New Delhi: Power Grid Corporation of India Limited has been declared the successful bidder for a transmission project to evacuate renewable power from the Lakadia Renewable Energy Zone (REZ) in Gujarat. The state-run transmission utility quoted an annual transmission charge of ₹1,152.49 crore for the project.
Power Grid said it received the Letter of Intent (LoI) for the project on Thursday. The award was made through the Tariff Based Competitive Bidding (TBCB) process used for the allocation of Inter-State Transmission System (ISTS) projects.
The company will develop and operate the project on a Build, Own, Operate and Transfer (BOOT) basis.
Power Grid to Develop Lakadia Renewable Energy Zone Phase II Project
The project is titled “Transmission System for Integration of Power from RE Projects in Lakadia REZ in Gujarat – Phase II (7,500 MW)”.
The project is aimed at creating the transmission infrastructure required to evacuate renewable power generated from the Lakadia renewable energy zone.
Key details include:
- Project: Lakadia REZ Phase II
- Renewable power capacity: 7,500 MW
- Annual transmission charges: ₹1,152.49 crore
- Bid process: Tariff Based Competitive Bidding
- Project model: Build, Own, Operate and Transfer (BOOT)
- Location: Gujarat
765/400 kV Lakadia-II Substation to Be Established
A major component of the project is the establishment of a new 765/400 kV Lakadia-II substation in Gujarat.
Power Grid will also construct associated 765 kV transmission lines traversing through the state.
The transmission infrastructure will include:
- New 765/400 kV Lakadia-II substation
- 765 kV transmission lines
- Associated transmission equipment
- Required bays at the substation
The new infrastructure will strengthen the transmission network required to integrate large-scale renewable power from the Lakadia REZ.
Synchronous Condenser to Support Grid Stability
The project also includes the installation and commissioning of a synchronous condenser at the Lakadia-II substation.
Synchronous condensers are rotating electrical machines that can provide reactive power and inertia support to the electricity grid. These functions have traditionally been provided by conventional thermal and hydropower generators.
The inclusion of a synchronous condenser is expected to support the reliable integration of large-scale renewable power into the transmission system.
Project Awarded Through Competitive Bidding
Power Grid secured the project through the Tariff Based Competitive Bidding (TBCB) route, which is used for awarding ISTS transmission projects.
Under the project structure, Power Grid will hold the transmission asset on a BOOT basis, allowing it to build, own and operate the infrastructure before transferring it in accordance with the applicable project framework.
The project is expected to play an important role in facilitating the evacuation and integration of renewable energy generated in Gujarat’s Lakadia zone.
About Power Grid Corporation of India Limited
Power Grid Corporation of India Limited (POWERGRID) is a Maharatna Central Public Sector Undertaking under the Ministry of Power. The company is primarily engaged in power transmission and operates one of India’s largest electricity transmission networks. POWERGRID plays a crucial role in strengthening the national grid, improving power supply reliability and supporting the integration of renewable energy into India’s power system.
Read also: Power Grid Wins ₹3,244 Crore Transmission Project to Evacuate 6 GW Rajasthan Solar Power
