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Punjab Issues Tender for 500 MW Grid-Connected Solar Capacity Across the State

The Punjab State Power Corporation Limited (PSPCL) has invited bids for the procurement of 500 MW of grid-connected solar power from projects to be developed anywhere within the state.

Under the tender conditions, developers may bid for capacities ranging from a minimum of 50 MW to a maximum of 250 MW. The deadline for bid submission is February 4, 2026, with the opening of bids scheduled for February 6, 2026.

Bidders are required to submit an earnest money deposit of Rs 1 million per MW, along with a non-refundable tender fee of Rs 25,000 and a processing fee of Rs 300,000. Successful bidders must furnish a performance bank guarantee of Rs 2.4 million per MW.

Selected developers will be responsible for setting up the solar power projects as well as the associated transmission infrastructure up to the designated delivery or interconnection point. They must obtain all necessary statutory approvals, including land registration, grid connectivity, and other regulatory clearances.

Land acquisition or leasing will be entirely the responsibility of the developer, who must demonstrate possession or legal right to use 100% of the required land prior to project commissioning.

Power evacuation and metering will be carried out at the interconnection point, which may be located at substations of PSPCL or the Punjab State Transmission Corporation Limited (PSTCL). The tender specifies connectivity at 220 kV and 400 kV PSTCL substations, as well as at 66 kV substations.

To qualify, bidders must have a minimum net worth of Rs 10 million per MW of the quoted capacity, based on audited financial statements for FY 2024–25 or FY 2023–24, or as on a date not more than seven days prior to bid submission.

In addition, bidders must demonstrate adequate liquidity by meeting at least one of the following criteria: an annual turnover of Rs 5 million per MW, profit before depreciation, interest and taxes (PBDIT) of at least Rs 1 million per MW, or an in-principle sanction letter from a financial institution committing a working capital line of at least Rs 1.25 million per MW.

The power purchase agreement will be valid for a period of 25 years from the scheduled commissioning and supply date. Projects must begin supplying power within 24 months from the effective date or the execution date of the PPA. Partial commissioning is permitted, subject to a minimum of 50% of the awarded capacity and at least 50 MW.

The tender mandates the use of solar modules listed under 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 utilisation factor (CUF) has been fixed at 19%, with a minimum annual CUF requirement of 17%.

Earlier in September, the Punjab Energy Development Agency had invited expressions of interest for the development of 40 MW of canal-top solar power projects in the state.