Central Electricity Regulatory Commission (CERC), in a very recent order, has approved and adopted the transmission charges for the project to be developed by Ramgarh New Transmission Ltd, a wholly-owned subsidiary of Power Grid Corporation of India Ltd (PGCIL).
CERC has adopted and approved the transmission charges (levelized tariff) of Rs.390.53 million per year, quoted by Ramgarh New Transmission Ltd.
Next Step
PGCIL will now apply to CERC for a grant of transmission license.
The project
Ramgarh New Transmission Ltd, a wholly-owned subsidiary of PGCIL, won the “Transmission system strengthening scheme for evacuation of power from solar energy zones in Rajasthan (8.1 GW) under Phase II – Part A” project to be developed on BOOM basis.
The transmission system involves establishment of a new 400/220kV substation, 400kV double-circuit transmission lines and associated substation extension works in Rajasthan. The transmission system is an Inter State Transmission System (ISTS) project and is to be completed in 18 months.
The bidders
There were four bidders in the fray for the project. In the final stage, which is after the mandatory e-reverse auction, PGCIL emerged as the successful (L-1) bidder with a quote of Rs.390.53 million per year. The others in the race were Adani Transmission Ltd that was L-2 with Rs.391.52 million, ReNew Transmission Ventures Pvt Ltd (L-3, Rs.445.16 million) and Sterlite Grid 19 Ltd (L-4, Rs.534.01 million).
It may be noted that PGCIL had initially quoted Rs.417.13 million per year as the levelized tariff but this was revised to Rs.390.53 million after as many as 26 rounds of bidding in the e-reverse auction. Adani Transmission Ltd also bid aggressively, sharpening its initial quote of Rs.500.00 million to a very competitive Rs.391.52 million.
PGCIL has emerged as successful bidder for all five projects awarded so far, related to power evacuation from Rajasthan solar parks. (Read more).
The LTTCs
The long-term transmission customers (LTTC) as specified in the Transmission Service Agreement (TSA) are:
- SBE Renewables Seventeen Pvt Ltd
- Renew Surya Aayan Pvt Ltd
- Renew Surya Vihaan Pvt Ltd
- Altra Xergi Power Pvt Ltd
On LTTC, namely Renew Surya Roshni Pvt Ltd, was subsequently removed by the Bid Process Coordinator (BPC), though it was present in the original TSA.
Change in Name
The project SPV “Ramgarh New Transmission Ltd” was incorporated and so named by REC Transmission Projects Company Ltd, the BPC, in June 2020. PGCIL, now having acquired the project SPV has changed the SPV’s name to “Powergrid Ramgarh Transmission Ltd”, effective March 31, 2021. CERC has taken note of the change in name, the regulator said in its order. Incidentally, REC Transmission Projects Company Ltd, a wholly-owned subsidiary of REC, has since been amalgamated with REC Distribution Projects Company Ltd (RECDPCL), effective February 6, 2021.
(Featured photograph (source: www.areprl.com) showing a solar power plant in Rajasthan is for illustration only)
