CERC Moves Forward With Kurnool RE Transmission Project

CERC Moves Forward With Kurnool RE Transmission Project

The Central Electricity Regulatory Commission (CERC) has advanced a key transmission project in Andhra Pradesh aimed at integrating additional renewable energy capacity into the grid, in a move that is expected to boost power infrastructure in Kurnool and surrounding areas.

The Central Electricity Regulatory Commission (CERC) has taken a prima facie view to grant a transmission licence to Kurnool III PS RE Transmission Ltd, a wholly owned subsidiary of Power Grid Corporation of India Ltd (PGCIL).

The project, titled Transmission System Strengthening at Kurnool-III Pooling Station for Integration of Additional RE Generation Projects, is being developed under the Build, Own, Operate and Transfer (BOOT) model.

High-capacity renewable evacuation

The transmission scheme is designed to evacuate up to 5,700 megawatts (MW) at 400kV and 2,250 MW at 220kV from the Kurnool-III pooling station, which is currently being implemented by PGCIL under the regulated tariff mechanism. The site includes space for integration of an additional 4.5 gigawatts (GW) of renewable power.

Connectivity has already been granted to several major developers, including Indosol Solar Pvt Ltd, Gentari Renewables India Castor One Pvt Ltd, Adani Renewable Energy Forty Two Ltd and Adani Renewable Energy Fifty One Ltd.

Key components of the project include:

• Installation of three 1,500 MVA, 765/400 kV interconnecting transformers (ICTs) at Kurnool-III PS;
• Construction of a 765 kV double-circuit line between Kurnool-III PS and Chilakaluripeta, with switchable line reactors at both ends;
• Additional 400 kV bays for terminating dedicated lines from renewable developers.

Competitive bidding and approvals

The project was awarded through a tariff-based competitive bidding (TBCB) process conducted by PFC Consulting Ltd. PGCIL emerged as the successful bidder, quoting an annual transmission charge of Rs 3.45 billion, and acquired full ownership of the implementing entity on March 27, 2025.

It has received approvals from several sectoral bodies, including:

• The 28th CMETS-SR meeting (Feb. 29, 2024),
• The 51st Southern Regional Power Committee (SRPC) meeting (May 15, 2024),
• The National Committee on Transmission (June 25, 2024),
• The Ministry of Power, which notified the project under TBCB (Aug. 21, 2024),
• And the Central Transmission Utility of India Ltd (CTUIL), which recommended the licence grant.

The project is expected to enhance grid stability and support India’s broader renewable energy goals by enabling the evacuation of large-scale clean energy in southern India.