Punjab Energy Development Agency (PEDA) has invited expressions of interest (EoI) to set up 40 MW of canal top solar power projects.

Bids must be submitted by September 29, 2025. Bids will be opened on the next day.

Bidders must submit ₹5,000 (~$57) as document cost and ₹1 million (~$11,346)/MW as earnest money deposit.

Selected bidders must pay non-refundable facilitation service charges at a rate of 0.5% of the total project cost, with a maximum limit of ₹5 million (~$56,726), before signing the implementation agreement.

Selected bidders must also provide a performance bank guarantee of ₹2.5 million (~$28,366)/MW at the time of signing of the implementation agreement.

The project must be commissioned within 300 days from the date of issuance of the letter of award.

The minimum capacity that can be bid for is 1 MW. A maximum of 50% of the total capacity of 40 MW can be allocated to a single bidder.

Developers, in coordination with the Water Resources Department and other water body owners, may identify sites for setting up canal top solar projects. PEDA will allocate projects based on the identified sites, and the selected developers will implement them on a build, own, and operate basis.

The developers will be responsible for designing, constructing, connecting to the substation, and commissioning the projects. They must also secure and maintain all approvals, arrange financing, and own and operate the projects throughout the PPA term.

Punjab State Power Corporation will procure the power generated at ₹3 (~$0.034)/kWh. Developers may adopt any suitable technology, provided that solar module structures are mounted over waterways with foundations supported at canal banks, ensuring that movement along the canal banks remains unhindered.

The Water Resources Department will lease canal land to PEDA at a rate of ₹150,000 (~$1,701)/MW/site/annum, which will then be transferred to solar power developers for 28 years, with possible renewal on mutually agreed terms.

Developers must pay the lease amount annually in advance from the date of land transfer until completion of 25 years of project operation or as extended by PEDA. Land ownership will remain with the Water Resources Department.

The lease amount, deposited with PEDA, will be forwarded to the Water Resources Department. In case of delay or default in payment, developers will be liable to pay 15% annual interest on the overdue amount for the delayed period.

Developers must pay a cess of ₹0.015 (~$0.00017)/kWh of electricity generated to the Water Resources Department. They may use canal water for cleaning the solar modules. The cess must be paid within 7 days of receiving energy charges from PSPCL, failing which, an interest of 15% per annum will be applied on the delayed amount for the period of default.

No experience is required to set up the projects.

Bidders must use commercially proven technologies to minimize risks and ensure timely commissioning.

Bidders must have a minimum net worth of ₹5 million(~$56,726)/MW.

In June, PEDA invited bids for the engineering, procurement, and construction of 30 MW solar projects at government buildings in Punjab and Chandigarh.

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