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The Central Electricity Regulatory Commission (CERC) recently issued an order related to the adoption of transmission charges for a specific power evacuation project in Rajasthan. The petition, filed by Rajasthan IV E Power Transmission Limited (RIVEPTL), sought approval under Section 63 of the Electricity Act, 2003. This project involves the development of a transmission system to evacuate 5.5 GW of renewable energy from Rajasthan’s Renewable Energy Zone (REZ) Phase-IV, focusing on the Jaisalmer/Barmer complex.
RIVEPTL, a subsidiary of REC Power Development and Consultancy Limited (RECPDCL), was established to implement this inter-state transmission system on a Build, Own, Operate, and Transfer (BOOT) basis. The transmission charges were determined through a transparent competitive bidding process in alignment with government guidelines. The bidding process included global invitations for qualification, which were published in October 2023. Subsequently, technical and financial bids were submitted, with an electronic reverse auction held on March 22, 2024.
The auction process saw participation from three bidders: Power Grid Corporation of India Limited (PGCIL), Adani Energy Solutions Limited, and Sterlite Grid 22 Limited. PGCIL emerged as the successful bidder, quoting the lowest annual transmission charge of ?2,521.10 million during the reverse auction, significantly lower than the estimated cost of ?4,049.78 million. The Bid Evaluation Committee (BEC) certified the transparency and competitiveness of the process, endorsing PGCIL as the preferred bidder.
Following the issuance of the Letter of Intent (LoI) on April 15, 2024, PGCIL completed the acquisition of RIVEPTL on August 19, 2024, fulfilling all requirements. The commission also evaluated the adherence to guidelines, including the preparation of bidding documents, bid evaluation methodologies, and the overall process. The final result was made public, ensuring compliance with the Ministry of Power’s “Tariff-Based Competitive Bidding Guidelines.”
CERC has approved the adoption of the discovered transmission charges of ?2,521.10 million per annum, which will remain valid for the duration specified in the Transmission Service Agreement (TSA). The sharing of these charges among the designated inter-state transmission system customers will follow the provisions of the relevant regulations. This decision marks a significant step in facilitating renewable energy evacuation from Rajasthan’s REZ, supporting India’s broader energy transition goals.
With this development, the project is set to enhance the capacity of India’s transmission infrastructure, promoting efficient integration of renewable energy into the national grid. The order also underscores the importance of competitive bidding and transparent processes in achieving cost efficiency and reliability in the power sector. |
