PSPCL awards 500 MW solar capacity in national auction

Punjab State Power Corporation Limited (PSPCL) has announced the outcome of its auction to procure 500 MW of solar power from projects located across India on a long-term basis. SAEL Industries emerged as the largest winner, securing 250 MW at a tariff of Rs 3.05 per kWh.

Waaree Forever Energies, a subsidiary of Waaree Energies, and JLTM Energy India, a subsidiary of Technique Solaire, were awarded 100 MW and 50 MW, respectively, each at a tariff of Rs 3.07 per kWh. MB Power (Madhya Pradesh), a subsidiary of Hindustan Power, secured 100 MW out of the quoted 150 MW capacity at a tariff of Rs 3.07 per kWh under the bucket filling method. The tender was issued in January 2025.

PSPCL will sign power purchase agreements (PPA) with the selected developers for a tenure of 25 years from the date of supply commencement. The projects are required to deploy only commercially established and operational technologies to limit execution risks and support timely commissioning.

The tender allows participation from projects under construction, those not yet commissioned, and operational projects without a long-term PPA that are currently selling power on a short-term or merchant basis. Such projects are eligible only if they are not covered under any other central or state schemes.

Selected developers will arrange grid connectivity and long-term access. All related expenses, including wheeling charges and transmission losses up to the delivery point, will be borne by the developers. They can also access fiscal incentives such as accelerated depreciation, concessional customs and excise duties, tax benefits, carbon credit trading, and financial support under the Punjab New and Renewable Sources of Energy programme.

Separately, last week, Hindustan Power secured a 100 MW AC solar power project from PSPCL to be developed in Punjab, with an estimated installed capacity of 140–150 MWp.

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