The Punjab State Electricity Regulatory Commission (PSERC) has approved 300MW of solar power procurement by Punjab State Power Corporation Limited (PSPCL) at tariffs ranging from ₹2.61 to ₹2.84 per unit, including a 250-MW purchase from the Solar Energy Corporation of India (SECI).
The approvals come months after the regulator had rejected PSPCL’s proposals to procure 2,500MW of renewable power from SECI and Satluj Jal Vidyut Nigam (SJVN), citing concerns over the financial implications and viability of the proposed arrangements.
In its latest orders, the PSERC has found both the 250MW and 50MW proposals to be necessary, economical and in the interest of efficient power procurement.
For the 250MW project, the PSERC has approved PSPCL’s long-term procurement of ISTS-connected solar power from SECI under the ISTS Manufacturing Linked Solar Power Scheme at a tariff of ₹2.61 per unit for 25 years.
The tariff comprises ₹2.54 per unit discovered through SECI’s tariff-based global competitive bidding and ₹0.07 per unit as SECI’s trading margin. The arrangement also carries a complete waiver of inter-state transmission system (ISTS) charges and losses, making the effective landing cost ₹2.61 per unit.
The PSERC noted the PSPCL’s submission that the procurement was the lowest-cost option among comparable long-term solar power procurement arrangements currently available to the state power utility.
{{/usCountry}}The PSERC noted the PSPCL’s submission that the procurement was the lowest-cost option among comparable long-term solar power procurement arrangements currently available to the state power utility.
{{/usCountry}}50MW intra-state solar power
In a separate order, the PSERC has approved another 50MW of intra-state solar power at a revised tariff of ₹2.84 per unit for 25 years.
The project comprises two 25MW grid-connected solar photovoltaic projects in Punjab. The commission had originally approved the procurement at ₹5.27 per unit in 2016, subsequently reducing the tariff to ₹3.75 per unit in 2019. However, the projects failed to meet the stipulated commissioning deadlines.
The latest tariff follows a settlement between the PSPCL and the project developer after the Appellate Tribunal for Electricity (APTEL), in an interim order dated November 17, 2025, allowed the parties to explore a settlement.
The revised ₹2.84 tariff is based on the latest intra-state solar tariff of ₹2.97 per unit discovered by PSPCL through competitive bidding, with a further 13-paise reduction attributed to the reduction in GST on solar power-based devices from 12% to 5%.
The PSERC said the PSPCL continued to face a projected and increasing shortfall in meeting its renewable purchase obligations (RPO/RCO), making additional renewable power procurement necessary.
Contrast with last year’s rejection
The latest approvals mark a notable contrast with PSERC’s stance last year, when it rejected PSPCL’s proposal for 2,500 MW of renewable power—923 MW of wind-solar hybrid power from SECI and 1,450 MW of solar power from SJVN.
The regulator had then raised concerns over the additional financial burden on PSPCL and consumers, including transmission-related costs and trading margins, and questioned the economic viability of the proposed procurement.
PSERC subsequently rejected PSPCL’s review plea relating to the 1,450-MW SJVN solar procurement.