The project will be developed on a build, own, operate and transfer, or BOOT, basis, with Power Grid quoting annual transmission charges of ₹1,152.49 crore.
The company received the Letter of Intent for the project on Thursday, September 3, according to an exchange filing.
What will Power Grid build?
The project, officially called the “Transmission system for Integration of Power from RE Projects in Lakadia REZ in Gujarat-Phase II (7500MW),” will help move electricity generated by renewable-energy projects in the region onto the wider grid.
Power Grid will establish a new 765/400 kV Lakadia-II substation and build 765 kV transmission lines across Gujarat, along with associated equipment and bays.
The project also includes the installation and commissioning of a synchronous condenser at the Lakadia-II substation, equipment used to help maintain grid stability as large amounts of renewable power are integrated into the electricity system.
Second major renewable transmission win in two days
The Gujarat win comes just a day after Power Grid emerged as the successful bidder for another large interstate transmission project linked to 6 GW of solar capacity in Rajasthan’s Barmer renewable energy zone.
That project will also be developed on a BOOT basis, with Power Grid quoting annual transmission charges of ₹3,244.33 crore.Together, the two projects are designed to facilitate the transmission of power from renewable-energy zones with a combined capacity of 13.5 GW in Gujarat and Rajasthan.
The quoted annual transmission charges across the two projects add up to about ₹4,397 crore, though these figures represent annual charges under the respective transmission projects and shouldn’t be confused with their construction costs or order values.
Power Grid shares closed 0.17% lower at ₹266.35 on September 3.
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