IGI Logo

According to minutes of the 33^rd meeting of the National Committee on Transmission (NCT) dated 26^th Sep 2025, the Leh–Kaithal VSC HVDC project, originally conceived to evacuate 5 GW of renewable energy from RE parks in Leh, has been converted to an EHVAC system due to technical, environmental, and geographical constraints. At an altitude of 4,700 meters with sub-zero temperatures, VSC HVDC technology was deemed unfeasible, leading to the project’s conversion to EHVAC system. This development marks a significant setback for Siemens Energy India (ENRIN), which had been the leading contender for the for the VSC HVDC project, while other HVDC players such as Hitachi Energy and GE Vernova T&D opted out citing similar challenges. The transition to EHVAC, however, opens up opportunities across the broader EHV equipment landscape, with orders expected to be split among different manufacturers of 400/220 kV transformers, switchgear, and related systems. ENRIN is currently trading at 90.1x/71.3x PE on SY26/27E. We maintain a ‘Hold’ rating with a target price of Rs3,360, as our valuation does not factor in any HVDC wins for ENRIN through SY27E.

Extreme high altitude led to the conversion of Leh – Kaithal VSC HVDC project to EHVAC: The project was converted to EHVAC following Front End Engineering Design (FEED) studies conducted by Siemens Energy. The studies highlighted that the complex geography of Pang pooling station, situated at an altitude of 4,700 meters with temperatures dropping to –35°C, posed geographical and technological challenges, as no VSC HVDC solution is proven at such elevations. Further issues included design and performance constraints of equipment under these conditions, logistical and transportation difficulties, and additional technical challenges such as operation at derated voltages, which would necessitate a significantly higher number of semiconductor devices. Collectively, these factors made EHVAC the more viable alternative.

Revised scope of work for evacuation of 5 GW RE power from RE parks in LEH (EHVAC): Under the EHVAC proposal, a 400/220 kV pooling station is planned at Pang, interconnected with three 400 kV renewable energy pooling stations (PS1, PS2, and PS3) to integrate RE power. Power from Pang will be evacuated to the 400 kV Sundernagar station through two double-circuit lines, and further transmitted to Saharanpur and Kaithal via 400 kV double-circuit connections, with additional links from Kaithal to Bahadurgarh and Modipuram at 765/400 kV. To supply Ladakh and Jammu & Kashmir, a 220 kV line from Pang to Leh (Phyang) is also included. For grid stability and reliability, synchronous condenser (SynCon) units are proposed at Pang, Leh, Kargil, Khalsti, and the RE developer pooling stations.

Leh–Kaithal EHVAC project with phased rollout and path ahead: To facilitate smooth implementation and build operational experience, the transmission scheme is planned in three phases. Phase I will provide evacuation capacity of 1.67 GW, while Phase II will add a further 2.33 GW, together covering all transmission elements of the scheme. For Phase III, which targets 1 GW of generation, the need for additional 400 kV interconnections and synchronous condensers will be determined based on operational performance and feedback. Furthermore, NCT has directed CTUIL and CEA to review the transmission scheme, POWERGRID to carry out feasibility studies and Ministry of New and Renewable Energy (MNRE) to gather feedback from RE developers on working on inverters in high altitude and low temperature as part of their scope of work along with implementation timeline.

Please refer disclaimer at https://www.plindia.com/disclaimer/

SEBI Registration No. INH000000271