Gujarat-based power company Torrent Power has received the letter of intent from PFC Consulting for the establishment of an inter-state transmission system (ISTS) for the evacuation of power from renewable energy projects in Solapur, Maharashtra.

The ISTS to be set up will evacuate 1,500 MW of renewable energy from the Solapur region.

The annual transmission charges amount to ₹500 million (~$6.03 million). The project has to be built under the build-own-operate-transfer mode, and the operation period will span 35 years.

The scheduled commercial operation date will be 24 months from the acquisition of the special purpose vehicle.

The proposed plan involves the installation of a transmission line spanning approximately 44 kilometers, connecting the existing Solapur substation of Powergrid Corporation of India (PGCIL) to the upcoming Solapur substation.

The successful bid for this project marks the company’s entry into the development of transmission projects.

Torrent Power, an integrated power utility of the Torrent Group, operates across the entire power value chain from generation and transmission to distribution.

The company has an aggregate installed generation capacity of 4,287 MW, which comprises 2,730 MW of gas-based capacity, 1,195 MW of renewable capacity, and 362 MW of coal-based capacity.

It has an additional 977 MW of renewable projects under development.

In terms of distribution, Torrent Power distributes nearly 28 billion units to over 4.03 million customers in multiple cities and has a presence in Gujarat, Maharashtra, Uttar Pradesh, and Union Territories.

Torrent Power was one of the winners in REMC Limited’s auction to supply 750 MW of round-the-clock power from grid-connected renewable projects with or without storage across India for 25 years. Torrent Power quoted the lowest tariff of ₹4.25 (~$0.051)/kWh to win 100 MW.

In June 2023, the company raised ₹6 billion (~$72.5 million) through the issuance of non-convertible debentures on a private placement basis. The company issued and allotted 60,000 secured, rated, listed, taxable, non-cumulative, redeemable, and non-convertible debentures of ₹100,000 each (~$1,204).