ReNew Transmission Ventures Pvt Ltd has won its third interstate transmission system (ISTS) project under the tariff-based competitive bidding (TBCB) mechanism.
According to information available from Central Electricity Regulatory Commission (CERC), ReNew Transmission has been selected as the successful bidder under the TBCB route, for developing an ISTS scheme under the build, own, operate and transfer (BOOT) mode.
The scheme in question is officially termed as “Transmission Scheme for Solar Energy Zone in Gadag (1,500 MW), Karnataka: Part A-Phase-II”. The project special purpose vehicle “Gadag II-A Transmission Ltd”, now owned by ReNew Transmission has already been transferred from the bid process coordinator REC Power Development & Consultancy Ltd (RECPDCL).
This is ReNew Transmission’s third ISTS project, won under the TBCB modality. ReNew is already developing two transmission scheme, for evacuation of wind and solar energy from upcoming renewable energy parks in Karnataka. These two projects, both currently under construction, have been housed under project SPVs – Koppal-Narendra Transmission Ltd and Gadag Transmission Ltd.
The new project involves, among other things, the construction of a 400kV high-capacity double-circuit line from Gadag Pooling Station to Koppal Pooling Station—both in Karnataka. Incidentally, both the upcoming pooling stations are being developed by ReNew Transmission, as part of its two existing projects discussed above.
Bidding process
In winning this project, ReNew Transmission got the better of three other contenders – Power Grid Corporation of India, Adani Transmission and Megha Engineering & Infrastructures. It is further learnt that Sterlite Power also qualified after the RfP stage but did not submit its price bid.
As per the initial bids, ReNew Transmission was L1 with a quote of Rs.25.813 crore as the levelised annual transmission charges (tariff). PGCIL followed with Rs.28.191 crore, and then by Megha Engineering (Rs.37.80 crore) and Adani Transmission (Rs.45.90 crore). After the e-reverse auction, ReNew Transmission continued to be L1 with a bid of Rs.24.543 crore. (See table). On an average, there was a nearly 20 per cent reduction in bid value from the initial (RfP) stage to the final e-RA.
Current Status
CERC, as per its recent order, has approved and adopted the transmission charge of Rs.24.543 crore per year, subject to grant of transmission licence to ReNew Transmission Ventures Pvt Ltd, the successful bidder. The selected developer will now apply for a transmission licence to CERC, and complete the envisaged transmission scheme within 18 months from the grant of licence.
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