Government-owned Power Finance Corporation (PFC) has transferred its special purpose vehicle Pune-III Transmission to Adani Energy Solutions, which emerged as the successful bidder for the evacuation of 7 GW of power from the potential renewable energy zone in Khavda, Gujarat, under Phase IV, Part D.

The inter-state transmission system (ISTS) project will be executed under a Build, Own, Operate, and Transfer (BOOT) model. Adani Energy Solutions will be responsible for the end-to-end execution, financing, and long-term operation of the system.

The transaction was executed for a total consideration of ₹187.8 million (~$2.2 million).

Adani Energy Solutions will finance, develop, construct, operate, and maintain the project.

Adani Energy must obtain the transmission license from the Central Electricity Regulatory Commission (CERC) and assume responsibility for designing, financing, constructing, owning, operating, and maintaining the project.

This includes establishing a new 765/400/220 kV substation at Pune-III, constructing 765 kV and 400 kV transmission lines, and installing reactors and other associated equipment. The project must be completed within 24 months from the effective date.

The transmission system must be operated and maintained for 35 years from the commercial operation date, after which all project assets must be transferred to the central transmission utility or its successors at zero cost and free from encumbrances.

Recently, PFC Consulting issued a tender to select a transmission service provider to establish an ISTS at Kurnool-III PS, Andhra Pradesh, to integrate an additional 4.5 GW of renewable energy.

Earlier, PFC invited bids to evacuate 3 GW of renewable energy from Gujarat.

In August, Adani Energy Solutions raised ₹83.73 billion (~$1 billion) through a qualified institutional placement. The proceeds will be invested in transmission assets, such as building bulk evacuation corridors for renewable power, the smart metering business, debt repayment, and general corporate purposes.