PGCIL’s Gujarat Subsidiary Gets Transmission License for 2 GW of Renewable Projects

Powergrid Bhuj Transmission Limited won the project at a quote of ₹1.23 billion per annum

March 6, 2020


The Central Electricity Regulatory Commission (CERC) has given transmission license to Powergrid Bhuj Transmission Limited (PBLT) to build transmission systems for 2 GW of renewable energy projects in Gujarat.

The PBLT, a subsidiary of the Power Grid Corporation of India Limited (PGCIL), had filed a petition with the Commission for the projects at Bhuj-II in the state on a build, own, operate, and maintain basis. It sought for the Commission to grant the transmission license so it can establish a transmission system for the project.

The PGCIL had emerged as the winner in the competitive bidding process conducted by PFC Consulting Limited in and had quoted the lowest levelized transmission charges of ₹1.23 billion (~$16.7 million) per annum.

In its response, the Commission said that in a previous order, it had directed the PBLT to issue a notice inviting suggestions or objections from the public regarding the approval of the requested transmission license. It noted that the petitioner did not receive any suggestions or objections in response to the notice.

In its order, it allowed for the transmission license while noting that the license would be granted subject to the fulfillment of certain conditions throughout the license period. Some of the most noteworthy conditions are:

  • The transmission licensee will, unless revoked earlier, remain in force for 25 years
  • The licensee will not enter any contract or engage in the business of trading in electricity during the period of subsistence of the transmission license
  • The licensee should not undertake any other business for the optimum utilization of the transmission system without prior intimation to the Commission and must comply with the provisions of the government
  • The licensee will coordinate with the licensee (including deemed licensee) executing the upstream or downstream transmission projects and the Central Electricity Authority for ensuring execution of the project in a matching timeline
  • The licensee must provide non-discriminatory open access to its transmission system for use by any other licensee, including a distribution licensee or an electricity trader, or generating company
  • Central Electricity Authority will monitor the execution of the project and bring to the notice of the Commission any lapse on the part of the licensee

Additionally, the CERC also directed the Central Electricity Authority (CEA) to monitor the project execution and inform the Commission of any lapse on the part of the licensee to meet the schedule for further appropriate action per the provisions of the act and transmission license regulations.

Previously, the Power Grid Corporation of India Limited won two contracts to set up the transmission infrastructure to evacuate power generated from renewable projects. PGCIL emerged as the successful bidder under a tariff-based competitive bidding process to establish the transmission system, and the letters of intent have also been issued.

Earlier, Mercom reported that PGCIL could monetize its transmission line towers by offering it to mobile telecom service providers on commercial basis under section 41 of the Electricity Act, 2003, which allows for effective utilization of assets to benefit the society at large, a committee constituted by the Central Electricity Regulatory Commission (CERC) said in its recommendation.