PSPCL Invites Bids For 500 MW Solar Power Projects Across Punjab

The Punjab State Power Corporation Limited (PSPCL) has launched a new competitive bidding process to procure 500 MW of solar power, aiming to expand the state’s renewable energy capacity. The tender allows developers to set up projects anywhere in Punjab, with a minimum project size of 50 MW and a maximum allocation of 250 MW for a single bidder.

According to the tender schedule, proposals must be submitted by February 4, 2026, while technical bids will be opened on February 6. Participating bidders are required to deposit ₹1 million per megawatt as earnest money and provide a performance bank guarantee of ₹2.4 million per megawatt to ensure timely project execution.

Developers selected under this tender will be responsible for all aspects of the project, including land acquisition, obtaining necessary statutory clearances, and establishing transmission infrastructure to connect with the state grid. The power purchase agreement (PPA) for these projects will be valid for 25 years. Projects are expected to be commissioned within 24 months of signing the agreement, with partial commissioning allowed if at least 50% of the awarded capacity or 50 MW is operational.

PSPCL has also emphasized quality and domestic sourcing. All solar modules and cells must come from government-approved lists of models and manufacturers. Financial criteria for bidders are strict, requiring a net worth of at least ₹10 million per megawatt and sufficient liquidity through defined turnover or profit benchmarks.

This initiative reflects Punjab’s commitment to increasing renewable energy adoption and reducing dependence on conventional power sources. By opening opportunities for large-scale solar projects and ensuring strict quality and financial standards, PSPCL aims to attract capable developers who can contribute to the state’s clean energy goals.

The tender represents a strategic effort to strengthen Punjab’s green energy portfolio, promote domestic manufacturing of solar equipment, and ensure long-term sustainability in the power sector. With clear timelines and defined requirements, the process is set to encourage competitive participation while supporting the state’s transition toward cleaner, renewable power sources.