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Punjab State Electricity Regulatory Commission Approves 400 MW Solar Procurement at Rs2.97/kWh

The Punjab State Electricity Regulatory Commission (PSERC) has approved Punjab State Power Corporation Limited (PSPCL) to procure 400 MW of solar power from SAEL Industries at a tariff of Rs2.97/kWh. The decision aligns with government regulations and supports PSPCL’s Renewable Purchase Obligation (RPO) compliance.

Key Highlights

• Transparent Tender Process – PSPCL initially issued a 1,000 MW solar tender with a ceiling tariff of Rs2.75/kWh but later revised it to Rs3/kWh after extending the bid submission deadline eleven times. SAEL was the only bidder, offering 400 MW at Rs2.99/kWh, which was later reduced to Rs2.97/kWh.
• Regulatory Compliance – The Ministry of Power’s bidding guidelines (2023) were incorporated, and PSPCL ensured alignment with Punjab government policies. The MNRE’s Approved List of Models and Manufacturers (ALMM) mandate was not applicable to this tender.
• Reasonable Tariff & Long-Term Agreement – PSERC determined that Rs2.97/kWh was competitive and market-aligned, approving the 25-year procurement deal with SAEL.
• Support for Energy Diversification – PSPCL emphasized that expanding its renewable energy portfolio with solar power was crucial for grid stability and reducing dependency on conventional energy sources.

This approval strengthens Punjab’s renewable energy commitments while ensuring cost-effective solar power procurement to meet its sustainability goals.