Punjab State Power Corporation (PSPCL) has issued a request for selection (RfS) to select bidders to procure power from 1 GW of grid-connected solar projects through a long-term tariff-based competitive bidding process.

Successful bidders must set up the solar project and the transmission network up to the delivery point. PSPCL will enter into a power purchase agreement (PPA) with successful bidders for 25 years from the scheduled commercial operation date of the project.

The last day to submit the bids is June 20, 2022. The bids will be opened on the same day. The reverse auction will be held on June 25, 2022.

The bidders must pay a non-refundable RfS document fee of ₹25,000 (~$326) and a tender processing fee of ₹300,000 (~$3,915). Bidders must also remit an earnest money deposit of ₹400,000 (~$5,220)/MW of the quoted capacity.

Successful bidders must furnish a performance guarantee of ₹1.18 million (~$15,399)/MW of the quoted capacity

The projects to be selected under this tender can be installed anywhere in India. However, only commercially established and operational technologies can be used to minimize the technology risk and achieve the timely commissioning of the projects. Bidders must comply with the Ministry of New and Renewable Energy’s list of models and module manufacturers under the Approved List of Models and Manufacturers (ALMM) regulation.

Projects under construction, projects which are not yet commissioned, and projects already commissioned but do not have any long-term committed PPA with any agency and selling power on a short-term or merchant plant basis will be considered. However, these projects must not be accepted under any other central or state programs and should not have any obligations towards existing buyers.

The minimum bid capacity must be 50 MW, and bids must be quoted only in multiples of 10 MW. Bidders can offer projects at multiple locations subject to each project having a minimum capacity of 50 MW. However, the cumulative capacity offered must not exceed 1 GW.

The competitive tariff to be initially quoted by the bidders during the bidding process must be firm and should be less than ₹2.30 (~$0.030)/kWh, which will be applicable for the entire contract period.

Only interstate transmission system (ISTS) grid-connected interstate projects and PSTCL grid-connected intrastate projects would be eligible.

The net worth of the bidders as of the last date of the previous financial year ending FY 2021-22 must not be less than ₹10 million (~$130,498)/MW of quoted capacity. During the last audited financial year, bidders should have a minimum annual turnover of ₹5 million (~$65,249).

Bidders must have an internal resource generation capability in the form of profit before depreciation, interest, and taxes (PBDIT) for a minimum of ₹1 million (~$13,049)/MW of quoted capacity. They must have an in-principle sanction letter from the lending institutions committing a line of credit for ₹1.25 million (~$16,312)/MW of quoted capacity.

Convergence Energy Services Limited had invited bids for the design, engineering, supply, construction, erection, testing, and commissioning of 86 MW of decentralized solar systems ranging from 300 kW to 10 MW at various substations of PSPCL in Punjab.

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