Power Grid Corporation of India (PowerGrid) has won a major inter-state transmission project to help integrate renewable energy from the Lakadia Renewable Energy Zone (REZ) in Gujarat. The company was declared the successful bidder through tariff-based competitive bidding for the “Transmission system for Integration of Power from RE Projects in Lakadia REZ in Gujarat–Phase II (7500MW)”.
The project will be developed on a Build, Own, Operate and Transfer (BOOT) basis, with PowerGrid quoting annual transmission charges of ₹1,152.49 crore. PowerGrid received the Letter of Intent (LoI) on 3 September 2026, marking a key step before final agreements and financial closure.
Under the project, PowerGrid will set up a new 765/400kV Lakadia-II sub-station in Gujarat. It will also construct 765kV transmission lines across the state, along with associated equipment and bays needed to evacuate power efficiently. A synchronous condenser will be installed and commissioned at the Lakadia-II sub-station to improve grid stability as more renewable power is injected into the system.
The 7,500 MW capacity underlines the scale of Gujarat’s Lakadia REZ and India’s push to connect large renewable parks to the national grid. Once operational, the infrastructure will help wheel green power from solar and wind projects in the zone to demand centres across states, supporting India’s clean energy and transmission expansion goals.
FAQs [Frequently Asked Questions]
Q1: What project has PowerGrid won in Gujarat?
PowerGrid won the inter-state transmission system for integrating 7,500 MW of renewable power from Lakadia REZ, Gujarat–Phase II, on a BOOT basis with annual charges of ₹1,152.49 crore.
Q2: What infrastructure will be built under this project?
The project includes a new 765/400kV Lakadia-II sub-station, 765kV transmission lines in Gujarat, associated equipment and bays, and a synchronous condenser at Lakadia-II.
Q3: Why is this project important for renewable energy?
It will enable large-scale evacuation of solar and wind power from Lakadia REZ to other states, improving grid stability and supporting India’s clean energy and transmission expansion targets.