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PFC Invites Bids for Kurnool-III Transmission Project to Enhance RE Integration

PFC Consulting Ltd. has issued a Request for Proposal (RFP) to select a Transmission Service Provider for the 'Transmission System Strengthening at Kurnool-III Power Station'. This initiative aims to enhance the Inter-State Transmission System and facilitate the integration of additional renewable energy projects.

September 28, 2024. By EI News Network

PFC Consulting Ltd., a wholly-owned subsidiary of Power Finance Corporation Ltd., has released a Request for Proposal (RFP) for the selection of a Transmission Service Provider (TSP) through a tariff-based competitive bidding process to establish the Inter-State Transmission System for "Transmission System Strengthening at Kurnool-III Power Station," in Andhra Pradesh to facilitate the integration of additional renewable energy generation projects.

As per RFP document PowerGrid Corporation of India Ltd. (POWERGRID) is on track to complete the Kurnool-III 765/400/220 kV Pooling Station by November 2024, a project aimed at bolstering renewable energy (RE) integration into India’s grid. The Kurnool-III pooling station, developed through the Regulated Tariff Mechanism (RTM), is expected to integrate an additional 4.5 GW of RE capacity. Key infrastructure includes a 765/400/220 kV 3x1500 MVA and 9x500 MVA Kurnool-III Pooling Station, as well as double-circuit (D/C) 765 kV lines from Kurnool-III to Kurnool (new) and Maheshwaram, which will provide connectivity for about 2,320 MW.

To meet the demand for further RE integration, plans are in place to expand Kurnool-III's capacity by adding four 1,500 MVA transformers and a 260 km 765 kV D/C line to Chilakaluripeta. Renewable energy developers, including Adani Renewable Energy and Indosol Solar Pvt. Ltd., have already secured connectivity for solar and pumped storage projects.

The project is being implemented through the Tariff-Based Competitive Bidding (TBCB) route. The TSP will be responsible for project financing, design, construction, operation, and maintenance under a Build, Own, Operate, and Transfer (BOOT) model for 35 years. The assets will eventually transfer to the Central Transmission Utility (CTU) or a government agency, at no cost.

The bidding process begins with the issuance of a Request for Proposal (RFP), which requires a non-refundable fee of INR 5 lakh or USD 7,000, plus GST. Key deadlines include a bid submission deadline of November 29, 2024, with the electronic reverse auction scheduled for December 11, 2024. Bidders must submit both online bids and hard copies after the reverse auction, with final selection of the TSP expected by December 19, 2024. The project must comply with regulatory approvals under the Electricity Act, and bidders must meet the criteria for land acquisition, technical compliance, and regulatory clearances.

The successful bidder will be required to manage all aspects of the project, including land acquisition, transmission license procurement, and adherence to environmental and regulatory standards. Refer document link for further details.
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