Bids Invited to Select Farmers for Setting Up 217 MW of Solar Projects in Punjab

Punjab Energy Development Agency (PEDA) has invited bids to select farmers set up 217 MW of solar power projects with individual project capacities of 1 MW, 1.5 MW, or 2 MW under Component A of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) program in the state.

The last date to submit the bids is April 5, 2022. Bids will be opened on the following day.

A ceiling tariff of ₹2.748 (~$0.036)/kWh has been set for the tender.

The solar power will be purchased by the Punjab State Power Corporation Limited (PSPCL) for 25 years.


The project must be commissioned within 12 months from the date of the issuance of the letter of award.

Under Component-A of the PM-KUSUM program, the government has set a target to set up 10,000 MW of decentralized ground-mounted grid-connected solar projects in the country.

Interested bidders will have to submit an amount of ₹100,000 (~$1,314)/MW as an earnest money deposit. The successful bidder will have to furnish an amount equivalent to ₹500,000 (~$6,570)/MW as a performance bank guarantee.

PEDA has stated that the minimum land requirement is 4.5 acres for 1 MW, 6.75 acres for 1.5 MW, and nine acres for 2 MW capacity projects.

By setting up solar power projects closer to the agriculture loads in the distribution or transmission network, distribution losses will be reduced considerably, and the voltage drop at peak day time load will be minimized.

PSPCL will be responsible for providing connectivity to the solar power project at the 11KV side of the nearest 66 KV grid substation, for which the solar generator will have to obtain technical feasibility clearance from PSPCL.

The selected solar generator will be responsible for laying the dedicated 11KV transmission line from the solar power project to the 66KV substation, installing the switchgear, and related equipment, including metering at the substation where the project is to be connected with the grid and metering, is to be done.

Bidders could participate as an individual or group of farmers, cooperatives, panchayats, farmer producer organizations, or water user organizations setting up the project on their lands.

If bidders cannot arrange the capital required to set up the projects, they may set up the project through a developer signing a land lease agreement.

If a developer sets up the project on leased land, the net worth of the bidder should not be less than ₹10 million (~$133,153) for 1 MW, ₹15 million for 1.5 MW, and ₹20 million for 2 MW during the last financial year.

During the power purchase agreement (PPA) term, the solar power project should generate minimum energy corresponding to a capacity utilization factor (CUF) of 15%.

The developer should obtain all necessary clearances for setting up the solar power project, as mentioned in the PPA.

Last October, PEDA invited bids for 220 MW of grid-connected solar power projects of 1 MW, 1.5 MW, or 2 MW capacity under Component-A of the PM KUSUM program.

Earlier, the Ministry of New and Renewable Energy had extended the time given to complete grid-connected solar projects under Component-A of the PM-KUSUM program until March 31, 2022.

According to Mercom’s India Solar Tender Tracker, various organizations have floated tenders for 495 MW of solar projects in Madhya Pradesh under Component-A of the KUSUM program.