PFC Tenders Transmission Systems for 2.5 GW of Wind Projects in Tamil Nadu

The transmission projects are expected to be completed after December 2021

December 27, 2019


PFC Consulting, a subsidiary of Power Finance Corporation, has issued a tender for shortlisting transmission service providers.

These service providers will help develop transmission systems for the evacuation of 2.5 GW of wind power in Karur/Tiruppur wind energy zones of Tamil Nadu.

The scope of work in this tender will include the establishment, operation, and maintenance of the project. The projects are to be developed on a build, own, and operate (BOO) basis.

Further, the selected transmission service provider will be responsible for the completion of activities, including the survey, detailed project report formulation, financing, project management, acquiring necessary permits, land compensation, design, engineering, procurement, construction, erection, testing, and commissioning of the projects.

The bidders are expected to have prior experience of developing projects (not necessarily in the power sector) in the last five years with an aggregate capital expenditure of at least ₹5 billion (~$70 million). Bidders are also mandated to have a minimum net worth of ₹2.5 billion (~$35 million) to participate in the bidding process.

The last date for the submission of bids for is January 17, 2020.

According to the tender, transmission systems are being developed for the integration of 18.5 GW of identified solar and wind energy zones in states of Tamil Nadu, Andhra Pradesh, and Karnataka with the inter-state transmission system (ISTS) network in the southern region.

The transmission systems associated with potential renewable energy capacity are based on inputs from the Solar Energy Corporation of India (SECI) and the Ministry of New and Renewable Energy (MNRE). These systems are expected to be implemented under three phases. Out of the 18.5 GW capacity renewable energy zones in the southern region, 5.5 GW is under Phase-I (Part-II), and 5 GW is under Phase-II.  10.5 GW of this capacity is expected to be completed by December 2021 and the balance 8 GW under Phase-III has been targeted for completion beyond December 2021.

The 2.5 GW wind potential identified in the Karur/Tiruppur area of Tamil Nadu has been prioritized under Phase-III for implementation beyond December 2021.

In November 2019, the Asian Development Bank sanctioned a $451 million (~₹31.77 billion) loan to the state of Tamil Nadu for a project that would enable better power transfer between the southern part of the Chennai-Kanyakumari Industrial Corridor and the northern regions where there is higher power demand.

In August 2019, Mercom reported how India’s transmission infrastructure is struggling to keep up with increasing wind and solar additions.

According to Mercom’s India Solar Project Tracker, the state has nearly 3.6 GW of large-scale solar installations while 208 MW are in the development pipeline.