POWERGRID Secures ISTS Contract to Evacuate 2.7 GW Renewable Energy in Karnataka

⚡ Quick Read

  • What happened: POWERGRID has won a PFC Consulting auction to develop an ISTS network at the Tumkur-II substation in Karnataka to integrate 2.7 GW of renewable energy.
  • Why it matters: This project is critical for developers in the Karnataka region, as it provides the necessary transmission infrastructure to evacuate large-scale renewable capacity.
  • Watch: The project execution timeline, which mandates completion within 24 months, and the upcoming integration of dedicated line bays for RE developers.

Background and Context

As India accelerates its renewable energy integration targets, the strengthening of the Interstate Transmission System (ISTS) has become a priority. PFC Consulting issued a tender in November 2025 to bolster the transmission network at the Tumkur-II substation in Karnataka. The project aims to facilitate the evacuation of 2.7 GW of renewable energy, addressing the growing need for robust grid connectivity in one of India’s most active renewable energy hubs.

Key Details

Power Grid Corporation of India (POWERGRID) emerged as the successful bidder, outcompeting other major industry players including Dilip Buildcon, Resonia, Adani Energy Solutions, and G R Infraprojects. The scope of work for POWERGRID is comprehensive, covering the entire lifecycle of the project from design and engineering to construction, testing, and operation and maintenance.

Technical specifications include the augmentation of the Tumkur-II pooling station with 400/220 kV, 3×500 MVA ICTs (5th to 7th) and 400/220 kV, 3×500 MVA ICTs (8th to 10th). Additionally, the project involves setting up the Tumkur-II – Madhugiri 400 kV (quad) D/C line and a ±300 MVAr static synchronous compensator. To support renewable energy developers, the project includes the construction of two 220 kV line bays and four 220 kV line bays for dedicated transmission line termination.

POWERGRID is responsible for land surveys, detailed project reports, financing, and securing all necessary statutory clearances, including approval from the Central Electricity Authority under Section 164 of the Electricity Act. The project mandates strict location proximity requirements: generation-pooling substations must be within a 3 km radius, load-serving substations within 5 km, and intermediate substations within 10 km.

What This Means for EPCs and Developers

For renewable energy developers, this development is a positive signal for project commissioning timelines in Karnataka. The addition of dedicated line bays at the Tumkur-II substation provides a clearer path for power evacuation, reducing the risk of curtailment. EPC contractors should note that POWERGRID is actively managing the procurement and construction phases, and the project must be completed within a 24-month window, placing pressure on supply chain and labor mobilization.

What Happens Next

POWERGRID is expected to move quickly into the land acquisition and permitting phase. Following its recent success in January with REC Power Development and Consultancy for projects in Davanagere and Bellary, the company is solidifying its dominance in the Karnataka transmission space. Furthermore, the industry should monitor POWERGRID’s ongoing search for a consortium partner for its green hydrogen and green ammonia evacuation project in Visakhapatnam, Andhra Pradesh.

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