PGCIL, Adani, Sterlite Power in race for Gujarat’s HVDC transmission project

Three players—Power Grid Corporation of India Ltd (PGCIL), Adani Energy Solutions Ltd (AESL), and Sterlite Power—have qualified to compete for a major interstate transmission system (ISTS) scheme in Gujarat, involving high-voltage direct current (HVDC) technology. The scheme is part of the Khavda V-A Power Transmission project, aimed at evacuating 8 GW of renewable energy from the Khavda region in Gujarat. Developer selection is being conducted through tariff-based competitive bidding (TBCB).

The project is estimated to cost Rs 248.19 billion, making it one of the most capital-intensive ISTS-TBCB schemes in recent history, according to the National Committee on Transmission’s June 2023 estimates. The bid process, initiated by REC Power Development & Consultancy Ltd (RECPDCL), will soon move to the price bid stage, followed by an e-reverse auction (e-RA) to determine the final developer.

The project involves setting up two ±800 kV HVDC terminal stations in Gujarat and Maharashtra, each with 6,000 MW capacity, and a 1,200 km HVDC bipole line between the two stations. Following industry requests, the Union power ministry has relaxed the minimum local content requirement for equipment at these stations, reducing it from 60% to 25%.

The Khavda V-A scheme is part of Phase V, which aims to evacuate 8 GW of renewable energy from the Khavda region. Other components of the project, such as Part B and Part C, are still in evaluation stages, with the latter estimated to cost Rs 120 billion and also involving HVDC technology.