Bharat Heavy Electricals Limited (BHEL) has received a ₹600 crore to ₹900 crore order from Power Grid Corporation of India Limited (POWERGRID) for two synchronous condensers at Kalyanpur in Gujarat. The equipment will support the transmission system being developed to integrate electricity from renewable energy projects in the Jam Khambhaliya Renewable Energy Zone. BHEL disclosed the award in a November 11, 2026 filing to the stock exchanges, stating that the contract value excludes GST and that execution is scheduled over 35 months.
The contract covers the complete project cycle, including design, engineering, manufacturing, supply, erection, testing and commissioning. Each of the two synchronous condensers is rated at +300 MVAr and -200 MVAr. These ratings indicate the equipment’s ability to provide or absorb reactive power, which is essential for managing voltage conditions across transmission networks. The order was awarded by POWERGRID on behalf of its project special purpose vehicle, and BHEL classified it as a domestic contract.
The equipment is intended to strengthen the grid rather than generate renewable electricity. A synchronous condenser is a rotating electrical machine that can dynamically supply or absorb reactive power to regulate voltage. It also contributes short-circuit strength and rotational inertia, helping the network withstand disturbances and maintain stable operation. These functions become increasingly important as solar and wind generation expands, since inverter-based renewable sources do not inherently provide the same grid-support characteristics as conventional synchronous generators. The Central Electricity Authority identifies voltage regulation, short-circuit strength and frequency stability among the benefits of synchronous condensers.
The Gujarat award is part of a wider order development for BHEL. In a November 12 announcement, the company confirmed that it had secured two synchronous-condenser projects from POWERGRID, covering Kalyanpur in Gujarat and Barmer in Rajasthan. Together, the projects involve four units, each rated at +300 MVAr/-200 MVAr. The Barmer installation is planned at the Barmer-II HVDC Terminal Station, with a separate execution period of 44 months. BHEL’s November 7 exchange filing had disclosed the Rajasthan order independently.
A notable feature of the combined projects is BHEL’s statement that they represent the first deployment of its indigenously designed synchronous-condenser solution. The company has identified its Bhopal manufacturing plant as the source of synchronous machines, auxiliaries, transformers and medium-voltage switchgear, while control systems will come from its Electronics Division in Bengaluru. This domestic manufacturing arrangement places the orders within BHEL’s broader effort to expand its capabilities in grid-stability equipment and strengthen indigenous engineering and manufacturing.
The projects reflect a growing requirement for transmission infrastructure that can accommodate higher renewable-energy penetration while maintaining reliable grid operation. Renewable energy zones need more than evacuation lines and substations; they also require equipment that can manage voltage, support system strength and respond to network disturbances. BHEL’s Kalyanpur contract therefore represents a specialised grid-support investment associated with Gujarat’s renewable-energy transmission development, rather than a direct addition to solar or wind generation capacity.