Image Source: ScanX
GR Infraprojects Limited has secured a Letter of Intent (LOI) from REC Power Development and Consultancy Limited (RECPDCL) for a significant power transmission project, marking a new milestone in its infrastructure portfolio. This project, valued with annual transmission charges of Rs 3.67 billion, is focused on setting up a robust transmission system to evacuate power from renewable energy sources in Madhya Pradesh, specifically from the Rajgarh and Neemuch Special Economic Zones (SEZ). The announcement today signals a pivotal step towards strengthening India's renewable energy transmission infrastructure.
Key Aspects of the REC-Backed Project
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Scope and Capacity: The transmission system supports the evacuation of 2,500 MW power from renewable energy projects in Rajgarh (1,500 MW) and Neemuch (1,000 MW) SEZs in Madhya Pradesh.
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Financials: The annual transmission charge for this project is pegged at Rs 3.67 billion (approximately $42.67 million).
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Timeline: The project must reach completion within 24 months from the special purpose vehicle (SPV) acquisition date, followed by an operations and maintenance period extending up to 35 years.
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Technical Specifications: The main infrastructure includes a 2×500 MVA, 400/220 kV substation at Handiya with 125 MVAr 420 kV bus reactors. At Neemuch Power Station, a new 220 kV Bus Section-II will be established, coupled with the augmentation of transformation capacity through three 500 MVA 400/220 kV interconnecting transformers. Additionally, four new 220 kV line bays will be constructed for renewable energy interconnection.
Project Execution:
GR Infraprojects will handle the engineering, procurement, construction, and long-term maintenance of this build-own-operate model, reinforcing its expertise in power transmission infrastructure.
Detailed Project Insights
In this tariff-based competitive bidding (TBCB) project awarded by RECPDCL, GR Infraprojects stood out as the lowest bidder, underlining its strong capability in EPC and project execution within India's evolving energy market. The project focuses on evacuating green power generated by solar and wind energy farms located in two high-potential SEZs, aligning perfectly with India’s target to boost renewable energy capacity and integrate it efficiently into the national grid.
The establishment of the Handiya substation equipped with large transformers and advanced bus reactors aims at boosting grid stability and accommodating peak renewable power transfers. Meanwhile, the Neemuch site upgrades will enhance the system's flexibility and reliability by expanding transformation capacity and renewable connectivity infrastructure.
Strategic Importance and Future Outlook
This project reaffirms GR Infraprojects’ commitment to infrastructure development beyond roads and highways by venturing heavily into power transmission, metro rail, and renewable integration projects. The long operational tenure of 35 years secures a prolonged business opportunity and steady revenue stream, pivotal for the company's growth trajectory.
For REC Power Development, this project exemplifies its role in spearheading transmission projects that facilitate clean energy transition and grid modernization, critical to meeting India's ambitious energy transition goals.
In conclusion, the project represents a major boost to Madhya Pradesh's renewable energy infrastructure and a significant win for GR Infraprojects, promising economic and environmental benefits in the broader energy ecosystem.
Source: Reuters,
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