Punjab Solar – RfP for 300 MW grid connected PV projects released

Punjab had set a target of 1000 MW solar power generation capacity in the ‘New and Renewable Sources of Energy (NRSE) Policy –2012’ released in December 2012. (The policy can be downloaded here). Punjab follows Karnataka, Odisha and Bihar in releasing RfPs in the last few weeks.
As part of that of the Phase 1 of the policy, Punjab Energy Development Agency(PEDA), has released the Request for Proposal(RfP) for 300 MW Solar PV capacity allocation. The bid submission timelines are given below
Some of the salient features of the policy are as under.
a. The power procurer will be Punjab State Power Corporation Limited(PSPCL)
b. The project size and related information are given below.
Project size
The projects sizes will be AC capacity. A tolerance of +5% on the DC side. No negative tolerance will be accepted. The maximum plant capacity in one location cannot exceed 20 MW.
c.Number of responses by a company – A bidder can submit a maximum of 3 bids for an aggregate capacity of 5 MW and 30 MW in Category 1 and 2 respectively at different locations. The different projects mean that each one of them shall have a separate PPA, interconnection and separate metering arrangement.
d. Selection process – competitive bidding. The benchmark tariff will the CERC tariff for SPV plants.


The bidder has to mention if the tariff opted is based on Normal rate of depreciation or Accelerated Rate of depreciation. The discount will then be calculated against the relevant benchmark tariff from the table above. The bidders offering the lowest tariff will be selected followed by the next lowest tariff and so on.
e. Grid connectivity – The interconnection with PSPCL will  be at voltage level of 11 kV upto 2.5 MW capacity and 66 kV above 2.5 MW capacity.
It is the responsibility of bidder or project developer for obtaining the grid connectivity with PSCPCL substation at its own cost.
f.An implementation agreement(IA) will be signed after the selected project developer submits a Detailed Project Report(DPR)
g. Power Purchase Agreement(PPA) – The PPA shall be signed within 30 days from the date of signing an implementation agreement(IA).
h. The project commissioning timelines are given below
Commissioning Timelines
i. Fiscal Assistance/Benefits for developers – The following taxes/duties/etc are exempted for any inputs for the construction of the project(fuel/Equipment/Machinery/etc)
– 100% electricity duty for power
– Octroi
– Value Added Tax(VAT)
– Entry Tax
– 100 % exemption from stamp duty and related fees for the registration/lease deed charges for the land required for the project
– Agricultural land can be used for the project and no fees need to be paid towards Change of Land Use(CLU), External Development Charges(EDC), etc.
– No need for getting NOC/consent from Pollution Control Board.
The developer can take land on lease from Panchayat/Government for 30 years. The list of the Panchayat/ Government land available is given in the RfP.
The Rfp can be downloaded here.
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