The Punjab State Power Corporation (PSPCL) has issued a request for selection to procure 500 MW of solar power from projects located anywhere in the state.

Bidders can quote for a minimum of 50 MW and a maximum of 250 MW.

Bids must be submitted by February 4, 2026. Bids will be opened on February 6.

Bidders must submit an earnest money deposit of ₹1 million (~$12,050)/MW, a tender fee of Rs. 25,000 (~$300), and a processing fee of ₹300,000 (~$3,615). The successful bidder must furnish a performance bank guarantee of ₹2.4 million (~$28,915)/MW.

Selected solar power developers must set up the solar projects along with the associated transmission network up to the designated delivery or interconnection point. They must obtain all statutory approvals, permits, and clearances, including grid connectivity and land registration.

Land acquisition or leasing is entirely the bidder’s responsibility. Developers must establish possession or the right to use 100% of the required land before commissioning.

Power delivery and metering will take place at the interconnection point, which may be at PSPCL or Punjab State Transmission Corporation (PSTCL) substations. The tender specifies 220 kV and 400 kV PSTCL substations, as well as 66 kV substations, for connectivity.

Bidders must have a minimum net worth of ₹10 million (~$120,480)/MW of the quoted capacity based on financial years 2024–25 or FY 2023–24 accounts, or as on a date not more than seven days before bid submission.

In addition, bidders must demonstrate liquidity by meeting at least one of the following conditions. An annual turnover of at least ₹5 million (~$60,240)/MW, profit before depreciation, interest, and taxes of at least ₹1 million (~$12,050)/MW or an in-principle sanction letter from a bank or lending institution committing a line of credit of at least ₹1.25 million (~$15,060)/MW towards working capital.

The power purchase agreement will be valid for 25 years from the scheduled commissioning and supply date (SCSD).

Projects must commence supply within 24 months of the effective date or the execution date of the power purchase agreement. Part commissioning is permitted, subject to a minimum of 50% of the awarded project capacity and 50 MW.

Solar modules must be sourced from the Ministry of New and Renewable Energy’s Approved List of Models and Manufacturers (ALMM) List-I, and solar cells from ALMM List-II.

The minimum declared capacity utilization factor (CUF) is set at 19%, with a minimum annual CUF of 17%.

In September this year, the Punjab Energy Development Agency invited expressions of interest to set up 40 MW of canal-top solar power projects.

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