CERC Approves Transmission Charges For Khavda Evacuation Project
POWER & RENEWABLE ENERGY

CERC Approves Transmission Charges For Khavda Evacuation Project

The Central Electricity Regulatory Commission has approved transmission charges for a renewable energy evacuation scheme in Gujarat called Transmission System for Evacuation of Power from potential renewable energy zone in Khavda area under Phase-V (eight gigawatt (GW)) Part C. The approval formalises the tariff discovered through a competitive process and advances infrastructure to support Khavda as a clean energy hub. The order is dated May 12, 2026.

The project was awarded to Adani Energy Solutions Limited (AESL) and will be implemented by its subsidiary KPS3 HVDC Transmission Limited on a Build, Own, Operate and Transfer (BOOT) basis. The petition under Section 63 of the Electricity Act, 2003, followed a bid process coordinated by PFC Consulting Limited. Four companies participated and after 49 rounds AESL quoted an annual transmission charge of Rs. 23,917.69 million (mn).

The Bid Evaluation Committee referred the tariff to a Cost Committee after the quote exceeded the Commission’s preliminary levelised estimate. The Cost Committee attributed the higher cost to the use of advanced Voltage Source Converter (VSC) technology, a first under the tariff based competitive bidding route in India, along with greater technical risks. Inflation, import duties and special geographical needs in the Khavda area, including pile foundations, further increased project cost, and the committee found the tariff justified.

The project scope includes terminal stations at KPS3 and South Olpad and a ±500 kV HVDC Bipole transmission link, with completion required within 48 months of transfer of the Special Purpose Vehicle (SPV) to the successful bidder. The expected commissioning date is December 12, 2029, and the approved charges will apply for the period specified in the Transmission Service Agreement. The Commission said the bidding complied with guidelines and that recovery of charges will be governed by the CERC’s 2020 regulations on inter?state transmission charges and losses.

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The Central Electricity Regulatory Commission has approved transmission charges for a renewable energy evacuation scheme in Gujarat called Transmission System for Evacuation of Power from potential renewable energy zone in Khavda area under Phase-V (eight gigawatt (GW)) Part C. The approval formalises the tariff discovered through a competitive process and advances infrastructure to support Khavda as a clean energy hub. The order is dated May 12, 2026. The project was awarded to Adani Energy Solutions Limited (AESL) and will be implemented by its subsidiary KPS3 HVDC Transmission Limited on a Build, Own, Operate and Transfer (BOOT) basis. The petition under Section 63 of the Electricity Act, 2003, followed a bid process coordinated by PFC Consulting Limited. Four companies participated and after 49 rounds AESL quoted an annual transmission charge of Rs. 23,917.69 million (mn). The Bid Evaluation Committee referred the tariff to a Cost Committee after the quote exceeded the Commission’s preliminary levelised estimate. The Cost Committee attributed the higher cost to the use of advanced Voltage Source Converter (VSC) technology, a first under the tariff based competitive bidding route in India, along with greater technical risks. Inflation, import duties and special geographical needs in the Khavda area, including pile foundations, further increased project cost, and the committee found the tariff justified. The project scope includes terminal stations at KPS3 and South Olpad and a ±500 kV HVDC Bipole transmission link, with completion required within 48 months of transfer of the Special Purpose Vehicle (SPV) to the successful bidder. The expected commissioning date is December 12, 2029, and the approved charges will apply for the period specified in the Transmission Service Agreement. The Commission said the bidding complied with guidelines and that recovery of charges will be governed by the CERC’s 2020 regulations on inter?state transmission charges and losses.

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