Tata Power purchases the renewable energy project Bikaner Transmission from PFC

4 Dec 2023 , 02:39 PM

The renewable energy project Bikaner-III Neemrana-II Transmission will be acquired by Tata Power Ltd for around Rs 1,544 crore. The company stated that it had won the bid.

A special purpose vehicle (SPV) for the energy project was established by PFC Consulting Limited, a division of Power Finance Corporation. A parent firm establishes a subsidiary known as a special purpose vehicle (SPV), also referred to as a special purpose entity (SPE), in order to separate its financial risks.

The transmission project is expected to help remove 7.7 gigawatts (GW) of renewable energy from the Bikaner Complex in Rajasthan. It will be implemented on a Build-Own-Operate-Transfer (BOOT) basis. The company stated in an exchange filing that the project ‘entails the establishment of a 340 kilometres transmission corridor from Bikaner-III pooling station to Neemrana II substation.’

For 35 years, Tata Power will oversee the transmission project. After the project SPV transfer date, the project is anticipated to be put into service within 24 months.

The project will play a significant role in the Ministry of Power’s 2022 strategy, the company further stated, provided it is successfully commissioned. The goal of this roadmap is to include more than 500 GW of renewable energy capacity in the national grid by 2030.

The company’s subsidiary, Tata Power Renewable Energy Limited (TPREL), was recently given the task of working with SJVN to create a 200 MW firm and dispatchable renewable energy (FDRE) project.  With a hybrid layout that includes solar, wind, and battery storage components, all proportioned according to their respective capacities, the plant has been meticulously designed.

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