In a strategic move to bolster its renewable energy footprint and satisfy Renewable Purchase Obligations (RPO), Punjab State Power Corporation Limited (PSPCL) has issued a tender for the long-term procurement of 250 MW of solar power. The procurement, established for a 25-year term, mandates the development of grid-connected solar photovoltaic (PV) power projects to be located at any site within the state of Punjab.
Project Specifications and Capacity Limits
The tender stipulates rigorous technical parameters and capacity thresholds to ensure the stability and scale of the state’s solar portfolio:
- Minimum Bid Capacity: Bidders must propose a minimum capacity of 50 MW per project.
- Maximum Cumulative Capacity: To prevent market concentration, the maximum cumulative capacity allowed per bidder is capped at 125 MW.
- Location Flexibility: Developers may offer projects at multiple locations, provided that each individual site satisfies the 50 MW minimum capacity requirement.
- PPA Tenure: Power Purchase Agreements (PPAs) will be executed for a period of 25 years.
- Commissioning Timeline: To ensure the timely infusion of green energy into the grid, power supply must commence within 24 months of the PPA execution.
Financial Eligibility Criteria per MW
Prospective developers must demonstrate significant financial robustnes, with eligibility determined by the following benchmarks based on quoted capacity:
| Category | Requirement Detail |
| Earnest Money Deposit (EMD) | ₹1 million per MW of quoted capacity. |
| Performance Bank Guarantee (PBG) | ₹2.4 million per MW, submitted post-LOI and prior to PPA signing. |
| Net Worth | Minimum ₹10 million per MW as of the last day of the previous financial year. |
| Annual Turnover | Minimum ₹5 million per MW during the previous financial year. |
| Internal Resource Generation | At least ₹1 million per MW (Profit before depreciation, interest, and taxes) as of the last day of the previous financial year. |
| Line of Credit | Minimum ₹1.25 million per MW in-principle sanction from lending institutions for working capital. |
Technical and Eligibility Criteria
PSPCL is casting a wide net to secure capacity, making the tender open to projects under construction, uncommissioned units, and already commissioned projects—provided the latter have no existing long-term PPA obligations or merchant plant commitments.
Eligibility is restricted to intrastate projects connected to the PSPCL or Punjab State Transmission Corporation Limited (PSTCL) grids. Bidders assume total responsibility for grid connectivity and long-term access, and all installations must strictly comply with Central Electricity Authority (CEA) regulations and the applicable Grid Code.
To minimize technology risk and ensure operational longevity, the tender mandates the use of commercially established and operational technologies. Furthermore, all solar equipment must be sourced from the Approved List of Models and Manufacturers (ALMM): List I (Solar Modules) and List II (Solar Cells).
Operational Requirements (CUF)
Performance standards are strictly enforced through Capacity Utilization Factor (CUF) mandates. While the tender allows for generation fluctuations, it stipulates an absolute minimum annual CUF of 17% throughout the entire 25-year PPA term.
Permitted deviation limits from the declared CUF are as follows:
- Years 1–10: +10% / -15%
- Year 11 onwards: +10% / -20%
Failure to maintain the 17% floor, regardless of these deviation allowances, represents a performance risk for the developer under the PPA terms.
Bidding Timeline and Process
The selection of developers will follow a transparent, multi-stage competitive process:
- Bid Submission Deadline: May 28, 2026.
- Technical Bid Opening: June 1, 2026.
- Bidding Process: A single-stage, two-envelope system (Techno-Commercial and Price bids).
- Auction Stage: Qualified bidders will proceed to an e-reverse auction to determine the final tariff.
- Submission Detail: Physical copies of required documents must be submitted to the office of the Dy. Chief Engineer/Investment Promotion Cell, T-8, Thermal Designs, Shakti Vihar, PSPCL, Patiala.
Regulatory Compliance and Authority
As the primary distribution licensee for Punjab, PSPCL has initiated this tender to meet future power requirements economically. All procurement terms, including the final discovered tariff, remain subject to the formal approval of the Punjab State Electricity Regulatory Commission (PSERC). This tender follows the successful completion of previous auctions, including a recent 500 MW solar award, as Punjab continues to transition toward a more sustainable energy mix.
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