The Punjab State Power Corporation (PSPCL) has invited bids for the procurement of 250 MW of solar power from projects of 50 MW or more located anywhere in Punjab, on a long-term basis for 25 years.

The last date to submit bids is May 28, 2026. Bids will be opened on June 1.

Bidders must submit an earnest money deposit of ₹1 million (~$10,513)/MW of the quoted capacity. Successful bidders must furnish a performance bank guarantee of ₹2.4 million (~$25,231)/MW after issuance of the letter of intent and before signing the power purchase agreement (PPA).

For all projects, the minimum project and bid capacity should be 50 MW. A bidder can offer projects at multiple locations, subject to each project having a minimum capacity of 50 MW, and the cumulative capacity not exceeding 125 MW.

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

Only PSPCL and the Punjab State Transmission Corporation (PSTCL) grid-connected intrastate projects would be eligible.

The tender specifies that only commercially established and operational technologies should be used to minimize technology risk and achieve the timely commencement of power supply from the projects.

The net worth of bidders on the last day of the previous financial year should not be less than ₹10 million (~$105,130)/MW of the quoted capacity.

They should have a minimum annual turnover of ₹5 million (~$52,565)/MW of the quoted capacity during the previous financial year.

Bidders should have an internal resource generation capability, in the form of profit before depreciation, interest, and taxes, of at least ₹1 million (~$10,513)/MW of the quoted capacity, as on the last date of the previous financial year.

They should have an in-principle sanction letter from the lending institutions or banks, committing a line of credit for a minimum amount of ₹1.25 million (~$13,141)/MW of the quoted capacity, towards meeting the project’s working capital requirement.

The responsibility for obtaining grid connectivity and long-term access from PSPCL/PSTCL will be entirely that of the successful bidder. For interconnection with the grid and metering, the successful bidder should abide by the applicable Grid Code, grid connectivity standards, and other regulations issued by the Central Electricity Authority.

Solar cells and modules to be used in the project must be from the Approved List of Models and Manufacturers (ALMM): List I (solar modules) and List II (solar cells).

The developer should maintain generation so as to achieve annual capacity utilization factor (CUF) within + 10% and -15% of the declared value till the end of 10 years from the commissioning date and within +10% and -20% of the declared value of the annual CUF thereafter till the end of the PPA duration of 25 years, subject to the annual CUF remaining minimum of 17% during the entire term of PPA.

In March this year, PSPCL invited bids to set up 500 MW/1,000 MWh battery energy storage systems in Mohali and Jalandhar.

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