Punjab Announces Tender for 54 MW of Solar Biomass Hybrid Projects

The Punjab Energy Development Agency (PEDA) has tendered 54 MW of solar-biomass hybrid projects to be developed in the state under power bundling mechanism.

The bid submission deadline is July 23, 2019. The proposed hybrid biomass solar PV project is based on the bundling of biomass and solar PV power in the ratio of 1:2.

The capacity comprises a solar PV power project of 48 MW which can be installed in multiples of 12 MW units at not more than four locations and a biomass power project having 6 MW capacity at a single location.

The state agency has set ₹4,25 (~$0.06099)/kWh as the base tariff for this tender. Bidders will have to provide a discount on the base tariff to win the projects.



The power purchase agreement (PPA) will be executed between PSPCL and the successful bidder, within 30 days from the date of signing of the implementation agreement. The PPA will be valid for 25 years from the date of commissioning of the hybrid project.

The hybrid biomass solar PV power project has to be commissioned within 24 months from the date of signing of the PPA. After 24 months, an extension can be provided for 30 days for the first time after a payment of ₹20,000 (~$287.010)/MW/ day and then for another period of maximum 60 days on a payment of ₹40,000 (~$574.020)/MW/day. After this period, the agency will forfeit the performance guarantee.

In case the commissioning of the project is delayed beyond 27 months from the date of signing of the PPA, the developer will pay PSPCL liquidated damages at a rate of ₹20,000 (~$287.010)/MW/day for any delay in the remaining capacity.

The maximum period allowed for the commissioning of the full project capacity with the encashment of performance bank guarantees and the payment of liquidated damages will be 29 months from the date of signing of the PPA.

PSPCL will recover the amount of the unrecovered extension fee payable to PEDA and liquidated damages from the payments due to the developer on account of the sale of bundled power to PSPCL.

According to PEDA, the setting up of the biomass power project is the most important aspect of this tender, and it must be ensured that it is commissioned and synchronized first in the scheduled period. Even if the solar PV component is completed, it will not be allowed to be synchronized before the synchronization of the biomass power project.

Recently, Punjab Renewable Energy Systems Pvt. Ltd. (PRESPL), a Mumbai-based biomass supply chain management company, announced it was planning to raise up to $10 million in Series B funding round. Promoted by the Bermaco Group, the company supplies loose biomass and biomass briquettes to biomass-based power plants and process industry with captive power plants.

Mercom previously reported that the central government’s cabinet, headed by Prime Minister Narendra Modi, approved the National Policy on Biofuels – 2018. A program to support the promotion of biomass-based cogeneration in sugar mills and other industries was also recently announced by the Ministry of New and Renewable Energy’s biomass power division.

In December 2018, the Ministry of New and Renewable Energy (MNRE) amended two clauses in the policy to support the promotion of biomass-based cogeneration projects in sugar mills and other industries in the country up to March 2020.

Image credit: Ornate Solar