Bids Invited for 220 MW of Solar Projects Under KUSUM Program in Punjab

The Punjab Energy Development Agency (PEDA) has invited bids for 220 MW of grid-connected solar power projects of 1 MW, 1.5 MW, or 2 MW capacity. The projects will be installed under Component-A of the Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (PM KUSUM) program.

The ceiling tariff for the tender is ₹2.748 (~$0.037)/kWh.

Under Component A of the program, the target is to set up 10 GW of decentralized ground-mounted grid-connected solar projects with individual project sizes of up to 2 MW.

The last date to submit the bids is October 25, 2021. Bids will be opened on October 26.


The selected bidder should commission the solar power project within 12 months from the date of the issuance of the letter of award (LoA).

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 the bidders fail to arrange the equity needed, they may set up the project through a developer by signing a land lease agreement. In such a case, the landowner will get lease rent.

Bidders will have to submit an amount of ₹100,000 (~$1,340)/MW as the earnest money deposit. The successful bidder will have to furnish ₹500,000 (~$6,704)/MW as a performance bank guarantee to the Punjab State Power Corporation Limited (PSPCL) within one month from the date of the issuance of the LoA.

The capacity utilization factor (CUF) of 21% has to be met by the projects as notified by the Punjab State Electricity Regulatory Commission.

PSPCL will provide connectivity to the solar power plant at 11 kV with the nearest 66 kV grid substation. The generator will bear the 11 kV transmission line cost and other related works to evacuate power from the project to the nearest 66 kV substation.

Bidder should have the ownership of the land in their names from or before August 31, 2021. The minimum land requirement is 4.5 acres for 1 MW, 6.75 acres for 1.5 MW, and 9 acres for 2 MW projects.

Bidders should have a net worth of not less than ₹10 million (~$134,093) for 1 MW, ₹15 million (~$201,140) for 1.5 MW, and ₹20 million (~$268,187) for 2 MW capacity projects during the last financial year.

The successful bidder should submit a copy of the detailed project report of the project to the financial institution for financial closure of the project to PEDA within six months from the date of the issuance of the LoA.

After 25 years, the solar generator and PSPCL can mutually agree to extend the period of PPA. If the PPA is not extended, the solar generator can convert the land to agricultural land and continue with irrigation facilities.

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

Earlier, the Maharashtra State Electricity Distribution Company Limited had invited bids for 487 MW of decentralized solar projects of 500 kW to 2 MW capacity under the program.

According to Mercom’s India Solar Tender Tracker, tenders for 2.9 GW of solar projects have been floated in the country under Component-A of the KUSUM program by various organizations.