Centre to bid out power transmission projects worth Rs 30,000 cr

By: | Updated: April 5, 2016 1:45 AM

In what would bring cheer to the private-sector power transmission companies, the government has decided to award transmission projects associated with new solar parks through tariff-based competitive bidding (TBCB).

In what would bring cheer to the private-sector power transmission companies, the government has decided to award transmission projects associated with new solar parks through tariff-based competitive bidding (TBCB).

These projects are estimated to be worth `30,000-50,000 crore.

“The evacuation system under the inter-state transmission system (ISTS) for future solar parks normally would be constructed through tariff-based competitive bidding (TBCB) route,” power secretary P K Pujari was recorded as saying during the progress review meeting of evacuation system for solar parks.

Additionally, the minutes of meeting reviewed by FE said PGCIL was executing power transmission systems for six solar plants in five states. The government had awarded Power Grid Corp (PGCIL) with these projects, with an estimated cost of nearly `15,000 crore, on nomination basis.

The decision to adopt the TBCB route for new solar parks means the private sector would be allowed to compete for 21 prospective solar parks.

The ministry of new and renewable energy has received a proposal for 27 solar parks from 21 states with aggregate capacity of over 18 gigawatt (GW). A part of these projects is being executed by PGCIL as ISTS. However, the secretary said that the evacuation system for other parks would be executed under intra-state system as opposed to the ISTS.

The solar parks, with a concentration of solar power projects in a defined area, provide developers with infrastructure and other amenities to minimise project risk associated with land acquisition and right of way. The concept of large solar parks with more than 500 MW of capacity has been able to bring down the cost of solar power.

“It is essential to ensure power evacuation infrastructure to the investors in solar projects. It takes 3-6 years for the developers to commission transmission lines while the solar project can be ready in six months. Private participation will ease the burden on the government (PGCIL) to commission transmission projects in a limited time,” an industry source said on the condition of anonymity.

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