The Punjab State Power Corporation (PSPCL) has issued a tender to procure 1,000 MW of power from solar projects with capacities ranging from 1 MW to 5 MW, located anywhere in Punjab.

The solar projects must be connected to PSPCL or Punjab State Transmission Corporation substations at 11 kV, preferably within a 5 km radius.

The last date to submit the bids is April 1, 2026. Bids will be opened by April 6.

The ceiling tariff has been set at ₹3.10 (~$0.034)/kWh.

Bidders must furnish an earnest money deposit of ₹400,000 (~$4,418)/MW and a tender fee of ₹25,000 (~$276) plus 18% GST.

Successful bidders must submit a performance guarantee of ₹1 million (~$11,044)/MW.

Grid connectivity charges are tentatively estimated at ₹1 million (~$11,044)/project.

The scope of work includes identifying, purchasing, or leasing land at the bidders’ cost, risk, and responsibility. Bidders must establish the complete solar project, including associated plant and machinery, transformers, switchgear, protection systems, bays, and dedicated transmission lines up to the delivery point.

Bidders must demonstrate a minimum net worth of ₹5 million (~$55,222)/MW of quoted capacity, based on FY 2024-25 or FY 2023-24 financial statements or within seven days prior to bid submission.

They must also meet liquidity requirements through either an annual turnover of at least ₹2.5 million (~$27,611)/MW, profit before depreciation, interest, and tax of ₹500,000 (~$5,522)/MW, or an in-principle approval or line of credit of ₹625,000 (~$6,903)/MW.

Selected bidders will sign power purchase agreements for a 25-year term. The project must be commissioned within 24 months of the PPA signing.

The minimum declared capacity utilization factor (CUF) must be at least 19%, with a minimum annual CUF of 17% maintained throughout the PPA term. PSPCL will provide generation compensation in case of grid unavailability exceeding 175 hours annually between 8 AM and 6 PM, and retains the first right of refusal for excess generation beyond 10% of declared CUF.

Only modules from the Approved List of Models and Manufacturers must be used.

Earlier this year, PSPCL issued a request for selection to set up 250 MW/500 MWh standalone battery energy storage systems in Bhatinda, Punjab.

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