Power Sector Update from Vishal Periwal, Vice President – PL Capital
We visited Adani Energy Solutions Mumbai HVDC project at Aarey, Goregaon. Discussion during the visit centred around operational aspects of HVDC vs HVAC transmission line, VSC vs LCC technology in HVDC and other operational aspects. Mumbai’s peak power demand is ~4.3 GW, while local generation capacity is ~1.9 GW, making the city structurally dependent on power imports. The Kudus–Aarey HVDC link therefore serves power highway into Mumbai, adding 1 GW of incremental power import capability and strengthening the city’s power supply reliability. Other key takeaways from the visit are as follows:
Kudus–Aarey HVDC strengthening Mumbai’s power infeed: The Kudus–Aarey HVDC link, developed by Adani Energy Solutions Limited (AESL) is a 1,000 MW, VSC based HVDC project commissioned in April 2026. The ~80 km transmission corridor comprises 30 km of overhead line and ~50 km of underground cable, connecting Kudus in Maharashtra directly to Aarey in Mumbai. The project acts as a “virtual power plant” for Mumbai, enabling the city to import a large block of power, including renewable energy, from outside the city and reducing reliance on local generation. The link has increased Mumbai’s power import capability.
Technology & EPC partner ecosystem: The INR 72bn Kudus–Aarey HVDC project has an estimated cost mix of ~50% equipment, ~30% cable, ~10% IDC, ~8% land and the balance in other costs. The project brings together global and domestic transmission specialists, with Hitachi Energy providing the core VSC-HVDC technology and undertaking the majority of the HVDC equipment/EPC scope. KEC International, as a subcontractor to Hitachi, is involved in civil and transmission-related execution, while an Indian company - Trenchless Engineering Services is responsible for HDD (Horizontal Directional Drilling) crossings. LS Cable (from South Korea) is supplying the specialised underground HVDC cable, while Stantec (from Canada) is providing engineering and consulting services.
VSC-HVDC: superior flexibility for urban grids: The Kudus–Aarey project uses VSC (Voltage Source Converter) technology, which offers greater flexibility and control compared with traditional LCC (Line Commutated Converter)-based HVDC systems. While LCC is well suited for high-capacity, long-distance power transmission with less T&D loss, it consumes reactive power and generally requires additional equipment (like STATCOM, Synchronous condenser) for voltage support, whereas VSC can independently and rapidly control active and reactive power, providing dynamic voltage support and better grid stability. VSC also offers black-start capability, a more compact footprint and greater suitability for underground cable systems, making it particularly relevant for Mumbai’s space-constrained urban grid. In simple terms, LCC is like a high- capacity electricity highway, while VSC is a highway with better traffic control and an in-built voltage stabilisation capability.
India’s Growing HVDC Footprint: ~10 Operational Links: As of 2026, India has roughly 10 major operational HVDC schemes/links if Mumbai is included, comprising both long-distance point-to-point HVDC and back-to-back HVDC stations. Grid-India's operating data lists major links such as Vindhyachal, Mundra–Mohindergarh, Champa–Kurukshetra, Bhadrawati, Raigarh–Pugalur, etc.
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