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Punjab Invites Bids for 1 GW Solar Power Projects, Deadline April 1, 2026

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

Solar projects must be connected to PSPCL or Punjab State Transmission Corporation (PSTCL) substations at 11 kV, preferably within a 5 km radius. The last date for bid submission is April 1, 2026, with bids scheduled to be opened on April 6. The ceiling tariff has been set at Rs 3.10 (~$0.034)/kWh.

Bid Requirements:

• Earnest Money Deposit: Rs 400,000 (~$4,418) per MW
• Tender Fee: Rs 25,000 (~$276) plus 18% GST
• Performance Guarantee: Rs 1 million (~$11,044) per MW
• Grid Connectivity Charges: Estimated Rs 1 million (~$11,044) per project

Scope of Work:

Bidders are responsible for identifying, purchasing, or leasing land at their own cost and risk. The project scope includes installation of solar plants, transformers, switchgear, protection systems, bays, and dedicated transmission lines up to the delivery point.

Financial and Technical Criteria:

• Minimum net worth of Rs 5 million (~$55,222) per MW of quoted capacity, based on FY 2023-24 or FY 2024-25 statements or within seven days prior to bid submission
• Liquidity requirements through annual turnover of at least Rs 2.5 million (~$27,611) per MW, profit before depreciation, interest, and tax of Rs 500,000 (~$5,522) per MW, or in-principle approval/line of credit of Rs 625,000 (~$6,903) per MW

Project Terms:

• Selected bidders will sign 25-year Power Purchase Agreements (PPAs)
• Commissioning must be completed within 24 months of PPA signing
• Minimum declared Capacity Utilization Factor (CUF): 19%
• Minimum annual CUF to be maintained: 17% throughout the PPA term
• PSPCL will compensate generation loss due to grid unavailability exceeding 175 hours annually (8 AM – 6 PM)
• PSPCL retains first right of refusal for excess generation beyond 10% of declared CUF
• Only solar modules listed in the Approved List of Models and Manufacturers (ALMM) are allowed

This tender reflects Punjab’s ongoing push to scale up renewable energy capacity while ensuring strict compliance with technical and financial standards for sustainable solar power deployment.