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With work set to commence on a massive Rs 21,000 crore transmission project to evacuate power from one of the country’s largest planned renewable energy parks in Ladakh, there are three unprecedented challenges of the sort that no major project of this scale has had to tackle so far.
One is a demand by the state-owned executing agency for ensuring round-the-clock security for site personnel, then there is the need for sourcing skilled labour into Ladakh from other states to meet the 1,200-odd workforce requirement, and lastly, the need for a mega road infrastructure upgradation plan to transport over-dimensional heavy equipment to the project site near the China border.
Beyond this, there is a larger question of the viability of the link envisaged from the upper reaches of avalanche-prone Ladakh all the way down to Haryana, given all of the additional costs that need to be padded in. Approved for around Rs 8,300 crore in Central government assistance in 2023 under the Ministry of New and Renewable Energy’s Green Energy Corridor (GEC) scheme, the strategic transmission link initially faced internal scrutiny over concerns around financial viability, documents obtained by The Indian Express reveal.
Meanwhile, tendering for the 13 gigawatt (GW) solar and wind hybrid park, to be developed by private players, is yet to begin as officials try to address concerns around nomadic herders relying on the identified land for livestock grazing. The park was announced by Prime Minister Narendra Modi in his Independence day address just weeks after the June 2020 clash between Indian and Chinese soldiers near the Galwan river.
Once operational, the high-voltage direct current (HVDC) link will carry power over a distance of 480 kilometers, from the planned park in Leh district’s Pang — situated at an altitude of over 4,700 meters — to Kaithal in Haryana.
The transmission project was conceptualised after the Ministry of New and Renewable Energy (MNRE) was directed in August 2020 to prepare a detailed plan for establishing a 7.5 GW solar park in Ladakh in consultation with the Solar Energy Corporation of India (SECI), documents reveal. By 2022, its scope grew to include 9 GW of solar, 4 GW of wind, and 12 GWh of battery storage. Alongside supplying power to the national grid at Kaithal, the hybrid park will also connect to the existing Ladakh grid and the Leh-Kargil-Alusteng line to ensure reliable power to Jammu and Kashmir.
Strategic considerations
In its detailed project report, Power Grid Corporation of India Ltd, which was handed over the transmission project, flagged security issues and the possibility of work interruptions. “The project sites of Pang are in close proximity to international border with China. This poses security threat for personnel and assets both during the construction period as well as post commissioning. Discussions may be required with armed forces in the region for appropriate security detailing of the project,” the report said.
It was decided to hand over the project to Power Grid, under the Ministry of Power, as opposed to conducting tariff-based competitive bidding (TBCB), after ministry officials cited strategic considerations. At a Empowered Technology Group meeting in March 2023, it was concluded that TBCB was unsuitable for this project as it could lead to misleading bid prices “due to extreme conditions of the project deployment area, hostile conditions, and lack of clear specifications of materials and devices for such extreme low temperatures.”
Technical, logistical challenges
Ladakh’s high solar irradiation and low temperatures are ideal for efficient solar PV generation, but its geography also presents unique challenges. With temperatures going as low as minus 45 degrees celsius coupled with heavy snowfall, the transmission equipment will use specialty steel to withstand extreme weather. It will also be reinforced with special foundations and avalanche protection structures.
Because of extreme winters, the working season in Ladakh is restricted to the period between mid-April to mid-October, as that is when the access roads are also open for general traffic movement. With construction slated to begin in 2025-26, the project will take 3-4 full working seasons to complete.
According to the project report, the current transport route to Pang can only carry loads up to 55 metric tons (MT) against the requirement of 86 MT. Airlifting of HVDC transformers to Leh airport was ruled out as infeasible. As a solution, Power Grid will coordinate with the Border Roads Organisation (BRO) “for development of road infrastructure including road widening, improvement of hairpin bends, gradient improvement, removal of protruded stones in hilly terrain and strengthening of bridges, construction of new bridges, etc,” documents show.
Among project risks, Power Grid has also identified the scarcity of skilled manpower locally as a significant challenge. It plans to bring required personnel from other states to Ladakh for the project. Roughly 1,200 people, 200 from Power Grid and the remaining deployed by other agencies, will be required for construction.
Financial viability
The project is approved to receive Rs 8,309 crore in grants from the central government, covering 40 per cent of the total estimated cost excluding interest. Power Grid has also been in discussions with Germany’s KfW for a line of credit of 600 million euros.
In a December 2022 Public Investment Board meeting, a senior advisor from NITI Aayog questioned the grant, pointing out that the net difference in the landed cost per unit of power at Kaithal with and without the grant is only Rs 0.33. “Considering this and taking into account high uncertainty, higher installation cost and huge dependence on forex component, there does not appear to have a need for grant,” they argued.
While finance ministry officials warned that the estimated cost does not account for potential delays, which could increase costs by 30-50 per cent, Power Grid officials reassured that any cost escalation in the transmission system would have a minimal impact on end consumers, as the transmission tariff accounts for only 12 per cent of the landed cost with the grant.
The financial viability of the entire project hinges on the planned 12 GWh of battery storage at the Pang renewable energy park, which will enhance the transmission system’s capacity utilisation from 35 per cent to 76 per cent. Importantly, India currently has less than 1 GWh of grid-connected battery storage, with much of the supply chain dominated by China.
For the 5 GW HVDC terminals at Pang and Kaithal, along with the associated transmission lines and cables, equipment and installation costs add up to Rs 16,000 crore, nearly 80 per cent of the total project cost. Documents show that only Siemens Energy and Hitachi Energy have shown interest in bidding. Power Grid, SECI, and MNRE did not respond to requests for comment.
13 GW hybrid park in Pang
As of December 2024, Ladakh’s renewable energy capacity stands at just 140 MW, comprising mostly small hydro and solar projects. The proposed 13 GW solar and wind park, poised to be one of India’s largest, will trail only the under-construction 30 GW hybrid park in Gujarat’s Khavda. In meetings for the transmission project grant, officials said private players will develop the park and that there is sufficient interest for the same.
However, the hybrid park has drawn criticism from local activists, who warn it could disrupt Ladakh’s fragile ecological balance. With tenders yet to be floated, officials from MNRE and the Union Territory of Ladakh met on January 1 to explore solutions.
They proposed a livestock grazing-friendly pilot solar project in the Pang area, entrusting SECI to work out the modalities, “with a specific focus on adjusting the height of the solar panels so that the nomadic herders can freely graze their livestock beneath the panels without any disruptions.”
When The Indian Express requested a copy of the environmental and social impact assessment (ESIA) report prepared by SECI for the hybrid project under the Right to Information Act, 2005, the request was denied due to “eco-political sensitivities involved”. In its response, SECI also said the ESIA report will be used to prepare the tender specifications.
