Current Affairs

Sign in
EconomyGS3
GS3

Power Grid Wins Gujarat Transmission Project to Boost Clean Energy

Source:upstox ↗

Why It Matters

Highlights massive investments in power transmission infrastructure necessary for integrating large-scale renewable energy projects, holding high relevance for infrastructure and economic development questions in GPSC exams.

Summary

Power Grid Corporation of India Limited (PGCIL) has been declared the successful bidder under tariff-based competitive bidding to establish an interstate transmission system project in Gujarat, enhancing clean energy transmission infrastructure and power evacuation capabilities in the state.

Key Points

  • Power Grid Corporation of India secured a major inter-state transmission project in Gujarat through tariff-based competitive bidding (TBCB).
  • The project involves establishing a major transmission system for evacuation of power, significantly boosting energy infrastructure in Gujarat.
  • Crucial for handling massive renewable energy generation, such as from the Khavda renewable energy park.

Important Terms

Power Grid Corporation of India Limited

A central public sector undertaking under the Ministry of Power, Government of India, operating as a Maharatna company and acting as the country's principal electric power transmission utility.

UPSC context

Important for UPSC Prelims/Mains (Energy & Infrastructure, Public Sector Undertakings). Tests knowledge of key Maharatna enterprises driving national power grids and renewable integration.

Source
State Transmission Utility

A statutory entity designated under the Electricity Act, 2003, responsible for the orderly and efficient transmission of electricity within a state network.

UPSC context

Core concept for UPSC Prelims under Indian Polity and Economy (Electricity sector reforms and institutional governance structures).

Static Concepts Connected

Economy Infrastructure Energy

What are the key mechanisms and institutional frameworks governing electricity transmission and tariff determination in India?

  • Regulatory Body: Central Electricity Regulatory Commission (CERC) regulates inter-state transmission tariffs and grants transmission licenses under the Electricity Act, 2003.
  • TBCB Framework: Tariff-Based Competitive Bidding (TBCB) replaced cost-plus tariff models for major inter-state transmission projects to encourage private sector participation and reduce costs.
  • BOOT Model: Build, Own, Operate and Transfer (BOOT) is a PPP model where a private entity builds, operates, and maintains infrastructure before transferring it to the government.

Cross-Topic Patterns

  • Renewable Evacuation + Green Growth Strategies

    Large renewable evacuation projects connect energy infrastructure directly to industrial growth zones and state-level green energy commitments under the National Action Plan on Climate Change (NAPCC).

  • TBCB Infrastructure + Regulatory Economics

    Tariff-based competitive bidding in transmission infrastructure showcases private-public sector interfaces within monopolistic power distribution networks regulated by CERC.

Expect a conceptual question combining TBCB frameworks, grid inertia, and renewable power evacuation mechanisms in western India.

Linked PYQs · 1

Linked PYQs · 1

  • 2025GPSC_PRELIMSGS1

    Under the Green Open Access Rules, 2022, the minimum size of the renewable energy project eligible for open access is