Punjab Invites Bids for 217 MW Solar Power Projects Under PM-KUSUM

The Punjab Energy Development Agency (PEDA) has invited applications from farmers, groups of farmers, panchayats, cooperatives, Farmer Producer Organisations (FPOs) and water use associations in Punjab for setting up of solar power plants of individual capacity of 1MW, 1.5 MW and 2 MW. the move comes even as Punjab struggles to find a way out of a severe power crisis that has saddled the state with expensive thermal power leading to prolonged cuts in supply. Solar power, despite inherently favourable conditions  has not really taken off here due to a combination of both institutional apathy and the challenge of subsidised power to the farming sector, one of the largest consumers of power where large power leakages for non-farming uses are also common.

The total aggregate capacity of the solar power plants will be 217 MW and the installations will be part of Component-A of PM KUSUM Scheme. The solar power generated will be purchased by Punjab State Power Corporation Ltd (PSPCL) for 25 years.

The last date of submission of bids is April 5, 2022 and the bids will open on April 6. Bidders are required to submit Rs 100,000 as earnest money per bid. The bank guarantee by successful bidders will be Rs 500,000. PEDA has put a ceiling on the tariff at Rs 2.748 and the solar power projects are required to be commissioned within 12 months from the date when the letters of award are issued.

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According to PEDA, 1 MW solar project will require 4.5 acres, 1.5 MW will need 6.75 acres and 2 MW will need 9 acres of land.  PSPCL will connect the solar power projects with an 11KV line with the nearest 66KV grid substation.  A clearance from PSPCL by the solar power generator is necessary for this.

The solar power generators themselves will be responsible for laying the transmission line of 11KV from the solar power plant to the 66KV line, install switchgear and metering at the substation. The successful bidders can also develop the solar power project with the help of a developer by signing a land lease agreement.

The government has set a target of 10,000 MW decentralized, ground mounted and grid connected solar power projects across India under the PM-KUSUM Scheme.

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Last year, a 220 MW tender under the same component of PM KUSUM was floated by PEDA. The entire project will be developed in a single phase. The construction will begin in 2023 and projects will be commissioned in 2024. Going by the state’s past record, betting on the success of the latest tender might be a fairly high risk venture.