Power Grid to Invest ₹25.8B To Build Transmission System in Rajasthan’s Solar Zone

The commissioning of the project is likely by December 2020


The state-run Power Grid Corporation of India Limited (PGCIL) has approved ₹25.8 billion (~$358 million) to develop a transmission system for solar energy zones in Rajasthan. The transmission network has its commissioning scheduled for December 2020, according to a BSE filing by the company.

Earlier this month, Mercom had reported that PGCIL won two contracts to set up transmission infrastructure to evacuate power generated from renewable projects. It emerged as the successful bidder under tariff-based competitive bidding to establish the transmission system and the letters of intent have also been issued.

Firstly, PGCIL will set up the transmission system for providing connectivity to renewable energy projects at Bhuj-11 (2,000 MW) in Gujarat on a build, own operate and maintain (BOOM) basis. The transmission system comprises a 765/400 kV gas-insulated substation and 765 kV of transmission lines in the state.

The company will also develop transmission systems associated with LTA application from Rajasthan Solar Energy Zone (SEZ) Part – C on a BOOM (Build Own Operate Maintain) basis. The transmission system comprises a 765/400 kV substation and 765 kV and 400 kV transmission lines that traverse Rajasthan, Haryana, and Delhi.

Lack of transmission infrastructure has been a growing concern for solar, and wind companies and Mercom reported on this issue several times.

Recently, Mercom reported that Adani Transmission Ltd also received two letters of intent to augment the country’s transmission network in the face of surging renewable additions. One letter was issued by PFC Consulting Limited for a transmission project in Rajasthan while another was issued by REC Transmission Projects Company for a transmission project in Gujarat.

In the past, Mercom has written about how with the expected surge in electricity demand over the coming decade and the rapid installation of solar and wind, India’s transmission and distribution system also requires significant expansion.

Recently, Mercom reported the Minister of Power, R.K. Singh, stating that “A working group for the expeditious implementation of renewable energy generation and associated transmission system has been constituted by the government.”