PSPCL floats tenders to buy 2000 MW solar power from Punjab and outside

The PSPCL will procure 1000 MW solar power from within Punjab, while another 1000 MW will be purchased from outside the state
PSPCL floats tenders to buy 2000 MW solar power from Punjab and outside (HT File)
PSPCL floats tenders to buy 2000 MW solar power from Punjab and outside (HT File)
Published on May 11, 2022 01:06 AM IST
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By, Patiala

: The Punjab State Power Corporation Limited (PSPCL) has floated tenders to purchase 2000 MW solar power for the next 25 years equally from within Punjab and outside to fulfil the renewable purchase obligation and meet future electricity requirements through economical and sustainable means.

As per the Indian Electricity Act, renewable purchase obligation mandates that all electricity distribution licensees should purchase or produce a minimum specified quantity of their requirements from renewable energy sources.

The PSPCL will procure 1000 MW solar power from within Punjab, while another 1000 MW will be purchased from outside the state. The two projects are designed to maintain reliability of the power grid through home generation and bringing power from outside.

The power will be purchased from grid connected solar PV power plants located anywhere in Punjab.

As per the plan, the PSPCL intends to commission this project within a period of 18 months from the date of execution of the power purchase agreement.

As the land cost is higher in Punjab, the PSPCL is given the liberty to have projects in multiple locations. A bidder can offer projects at multiple locations subject to each project having a minimum capacity of 5 MW with cumulative capacity offered not exceeding 1000 MW. However, bidder shall quote a single tariff for the entire of its projects’ capacity offered.

As far as tariff is concerned, the competitive tariff to be initially quoted by the bidders during the bidding process shall be firm and shall be less than Rs. 2.55/-per kWh, said PSPCL in its condition.

This would be followed by the e-reverse auction.

To bring more players into bidding, the PSPCL has given some incentives. The bidders will be free to avail fiscal incentives like accelerated depreciation, concessional customs and excise duties, tax holidays, benefits from trading of carbon credits, etc. as available for such projects.

Similarly, the PSPCL has floated the proposal for another 1000 MW from outside the state for solar power.

“The main goal is to purchase power from all sources, where cost is less than Rs. 3 per unit and here solar power is best suitable. In this purchase, the bidders shall quote the firm tariff less than Rs. 2.55 per kWh that will be applicable for the entire contract period of 25 years,” said a PSPCL official.

He said that the PSPCL is short of renewable power obligations. Besides that, the solar power is economical and vastly remains available during summers when Punjab power demand is at its peak. The addition of 2000 MW power from solar is necessary to bring down power purchase cost and ensure that power remains available in peak season.

Despite of several attempts, PSPCL CMD Baldev Singh Sran could not be contacted for comments.


    A principal correspondent, Vishal Rambani is the bureau chief at Patiala. He covers politics, crime, power sector, environment and socio-economic issues, with several investigative stories to his credit.

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