The Ministry of Power has approved 23 new interstate transmission system (ISTS) projects to augment seamless transfer of power from power surplus regions to power-deficit regions.

The estimated cost of the projects is ₹158.93 billion (~$2.11 billion).

The new ISTS projects will include 13 projects with an estimated cost of ₹147.66 billion (~$1.96 billion) under the tariff-based competitive bidding process. The other ten projects with an estimated cost of ₹11.27 billion (~$149.38 million) will be developed under the regulated tariff mechanism.

The projects would facilitate the development of the evacuation system for 14 GW of renewable projects in Rajasthan, 4.5 GW of renewable projects in Gujarat, 1 GW at the Neemuch Solar Park in Madhya Pradesh, and feeding areas in Akhnoon and Jammu region by establishing the Siot substation in Jammu.

The Ministry approved the projects after examining the recommendations made by the National Committee on Transmission and in compliance with the National Tariff Policy, 2016. The policy states that ISTS projects, other than strategic and time-bound ones, are to be developed through a tariff-based competitive bidding process.

The projects are expected to provide seamless connectivity across the country for the transfer of power and optimize the use of generation resources to meet the demands of the end consumers without any transmission constraints. The decision aims to foster the growth of renewable projects across the country.

Recently, the Central Electricity Regulatory Commission approved the execution of the proposed transmission system for the evacuation of 8 GW of power from solar energy zones and wind energy zones in the southern region. It directed the Central Transmission Utility of India Limited to ensure that the transmission system matches the progress of generation projects.

Last month, the Ministry of Power revised the terms of reference of the National Committee on Transmission to fast track the planning and approval of ISTS projects to facilitate greater renewable energy integration. The Ministry believes that this would go a long way in facilitating the integration of renewable energy in the power sector.

Subscribe to our real-time Regulatory Updates to ensure that you never miss any critical updates from the renewable energy industry.