PSPCL Floats Tender to Procure 1 GW Solar Power from ISTS-Connected Projects

The last date for submission of bids is October 31, 2023


The Punjab State Power Corporation (PSPCL) has floated a tender to procure 1 GW of solar power from interstate transmission system (ISTS)-connected projects. This will be followed by an e-reverse auction for projects with a capacity of 50 MW or more located anywhere in India.

The last date for submission of bids is October 31, 2023. Bids will be opened on November 2.

Bidders have to pay ₹25,000 (~$300) plus 18% GST as the cost of the tender and a processing fee of ₹300,000 (~$3,604) plus 18% GST.

Bidders must also furnish an earnest money deposit (EMD) of ₹400,000 (~$4,805)/MW of the quoted capacity.

The successful bidder has to provide a performance bank guarantee (PBG) of ₹1,180,000 (~$14,179)/MW of the allotted capacity (comprising ₹1 million (~$12,015)/MW plus 18% GST, if applicable) must be provided in the form of a bank guarantee.

The PBG should be submitted after receiving the Letter of Intent (LOI) and before signing the Power Purchase Agreement (PPA).

PSPCL will enter a PPA with the winning bidders, which will be in effect for 25 years starting from the project’s scheduled commercial operation date.

Bidders are required to submit an initial competitive tariff during the bidding process, which must be firm and below ₹2.55 (~$0.03) per kWh. Subsequently, an e-reverse auction will take place.

The choice between crystalline silicon, thin film, and whether to employ trackers will be at the bidders’ discretion. However, only well-established and operational technologies will be accepted to minimize technological risks and ensure timely project commissioning.

Project developers must adhere to the requirements outlined in the “Approved List of Models and Manufacturers” of solar photovoltaic modules (Requirements for Compulsory Registration) Order, 2019” issued by the Ministry of New & Renewable Energy (MNRE), as updated from time to time.

Projects under construction, not yet commissioned, or have been commissioned but lack a long-term committed PPA with any agency and sell power on a short-term or merchant plant basis may still be considered.

This is provided that these projects are not already included in any other central or state programs and do not have obligations towards existing buyers.

Eligibility for this tender is limited to interstate Projects connected to the ISTS grid and Intrastate Projects connected to the Punjab State Transmission Corporation grid.

Bidders should have a minimum net worth of at least ₹10 million (~$120,166)/MW of the capacity quoted. This net worth requirement should be met as of the last date of the previous financial year (FY 2022-23 or FY 2021-22) or on a date not more than seven days before the bid submission due date.

The winning bidder will be responsible for establishing the solar project, along with the transmission network up to the delivery point, at their own expense and in compliance with this tender’s provisions.

This includes obtaining all necessary approvals, permits, and clearances and handling connectivity and land registration from both State and Central Government and local authorities.

Earlier in August, PSPCL invited bids to purchase 500 MW of power from grid-connected ground-mount or floating solar projects located in Punjab.

PSPCL had issued a request for selection to procure power from 1 GW of solar projects with a minimum capacity of 5 MW located in Punjab through a long-term tariff-based competitive bidding process.

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