Power Grid wins Lakadia-II transmission project at Rs 1,152.49 crore annual charge

New Delhi: Power Grid Corporation of India Limited has been declared the successful bidder for a transmission project that will evacuate renewable power from Gujarat's Lakadia zone. It quoted annual transmission charges of Rs 1,152.49 crore for the contract. The company said it received the letter of intent (LoI) on Thursday.

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The award came through tariff based competitive bidding (TBCB), the route used to allot inter-state transmission system (ISTS) projects. Power Grid will hold the asset on a build, own, operate and transfer (BOOT) basis. The project is titled "Transmission system for Integration of Power from RE Projects in Lakadia REZ in Gujarat-Phase II (7500MW)."

What the project covers

At the centre of the build is a new substation. Power Grid will establish a 765/400 kV station, Lakadia-II, in Gujarat. Feeding into it will be 765 kV transmission lines "traversing through the state of Gujarat along with the associated equipment and bays", the company said in its filing.

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One further element sits at the substation itself. The project involves the "installation & commissioning of Synchronous condenser at Lakadia-II Sub-station". Synchronous condensers are rotating machines used to supply reactive power and inertia to a grid, functions conventionally provided by thermal and hydro generators.

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