PEDA Floats Tender for 4.5 MW Solar Projects Under KUSUM

The last date for the submission of bids is September 25, 2023


Punjab Energy Development Agency (PEDA) has invited bids from farmers, groups of farmers, panchayats, co-operatives, farmer producer organizations, and water user associations in the state for setting up three grid-connected solar power projects with a total capacity of 4.5 MW under Component A of Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM).

The three projects to be developed under the tender will be of 1 MW, 1.5 MW, and 2 MW capacities.

The last date for the submission of bids is September 25, 2023. Bids will be opened on September 28.

The chosen bidders will have to enter into a Power Purchase Agreement (PPA) for 25 years with Punjab State Power Corporation (PSPCL) for the sale of electricity at the lowest tariff (L-1 tariff) determined through a competitive bidding procedure.

Bidders must submit an earnest money deposit of ₹100,000 (~$1,209.3) per MW of the quoted capacity.

The selected bidders must submit a performance bank guarantee (PBG) of ₹500,000 (~$6,047)/MW to PSPCL.

The project must be commissioned within 12 months from the issue of the letter of award.

The solar power projects must be set up near the 66 kV substations, preferably within a range of 5 km.

PSPCL will be responsible for establishing the connection for the solar power projects to the 11 kV side of the nearest 66 kV grid substation. The selected bidder needs to acquire technical feasibility clearance from PSPCL.

The chosen solar project developer will have to bear the expenses for setting up a dedicated 11 kV transmission line from the solar project to the 66 kV substation.

This also includes the installation of switchgear and associated equipment, along with the metering infrastructure at the substation, where the plant will be linked to the grid and metering operations will take place.

Individuals or groups who possess legal land ownership, recorded in the state government’s revenue documents under their names on or before December 31, 2021, are eligible to apply for and receive solar power allocations.

The minimum land area required for eligibility is 4.5 acres for a 1 MW plant, 6.75 acres for a 1.5 MW plant, and 9 acres for a 2 MW capacity plant.

Bidders can apply for only one solar power plant for a specific sub-station. They cannot submit joint or individual applications for another power project linked to the same sub-station.

The successful bidder has the option to execute the project through a Special Purpose Vehicle (SPV), a company wholly owned (100%) by the applicant.

The developer’s average net worth must be at least ₹10 million (~$120,931) for a 1 MW capacity plant, ₹15 million (~$181,392) for a 1.5 MW capacity plant, and ₹20 million (~$241,856) for a 2 MW capacity plant, from the fiscal years 2020-21 to 2022-23

In March, PEDA invited bids to commission 8.7 MW of solar projects at 970 rural piped water supply systems in the state.

Earlier, PEDA invited bids to install and commission 10 MW of grid-connected rooftop solar systems with the net metering facility on government buildings across the state under the renewable energy service company model.

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