Power transmission project related auctions in India are gaining momentum to support the country’s capacity addition in renewables.
According to data collated from Ministry of Power, Central Electricity Authority (CEA) and Crisil report, transmission projects worth almost ₹10,000 crore are under various stages of the auction process in the inter-State transmission bidding.
Of this, 80% are a part of Green Energy Corridors (GEC). These are dedicated Inter-State Transmission System (ISTS) projects sanctioned by the Ministry of Power to evacuate large-scale renewable energy from renewable energy-rich zones in the country.
These ‘green’ transmission corridors will evacuate power generated in eight renewable-rich States of Tamil Nadu, Rajasthan, Karnataka, Andhra Pradesh, Maharashtra, Gujarat, Himachal Pradesh and Madhya Pradesh.
Project bids estimated at ₹8,540 crore (80% of the total estimate of ₹10,598 crore) are apportioned for these critical GEC projects which are specially designed towards meeting India’s renewable energy goal of 450 GW by 2030.
Of the total ₹8,540 crore, GEC bid worth ₹686 crore for renewable energy evacuation from Koppal (Karnataka) has already been awarded while bids worth ₹2,800 crore will be lined up within the next month.
The request for proposals for these projects have already been released by the Centre and some of them are in the final leg of the auction process, industry officials said.
National Infrastructure Pipeline had already outlined a capex of ₹3.04 trillion in the transmission segment (mostly interstate).
In addition, 44 new power transmission projects, mostly GECs, have been already identified by National Committee on Transmission which are expected to come up for competitive bidding in the coming fiscals.
India is one of the few countries that has opened its transmission sector for private participation.
The National Tariff Policy 2006, which introduced tariff-based competitive bidding (TBCB) guidelines for all transmission projects, promoted competition in the construction of transmission infrastructure and thereby encouraged greater investment by private business in the sector.