• Developers have been invited to bid for solar PV capacity totalling 15 MW that is set to come up on canal tops in the Indian state of Punjab
  • Bidders can bid for a minimum of 2.5 MW capacity and up to 7.5 MW
  • Winning bidders will get central financial assistance of 30% of the total project cost per MW
  • Developers can source 'non-domestic content' PV equipment for these projects
  • The last date of e-bid submission is September 23, 2016

The Punjab Energy Development Agency (PEDA) has invited solar power project developers to set up 15 MW of grid connected solar PV power plants on canal tops. The projects will be eligible for central financial assistance (CFA) covering 30% of the total project cost of up to 30 million INR ($45,000) per MW.

As part of its pilot-cum-demonstration project for the development of grid-connected solar PV power plants on canal tops, the Ministry of New and Renewable Energy (MNRE) has allocated 20 MW of Canal Top Solar PV Projects to Punjab. The 15 MW capacity being tendered by PEDA is part of the same scheme.

Bidders can bid for a minimum capacity of 2.5 MW and maximum capacity of 7.5 MW on any of the locations as mentioned in the RfS documents. The bid capacity for any one location will be 2.5 MW, 5 MW or 7.5 MW.

The projects can use solar PV power generation technology sourced under open category, which means developers can use products from any part of the world, not only from India.

Winning developers will get a waiver on 100% electricity duty for power consumed from state utility during construction and testing of the project. At the same time, manufacturing and sale of new and renewable sources of energy equipment will be exempt from value added tax (VAT).

Land for the projects will be provided by PEDA to the developers, on build-operate and own basis for a period of 28 years. The developers will have to pay 150,000 INR for land lease per annum per MW in advance, which will be forwarded to the Punjab Irrigation Department that will make this land available in the first place.

Punjab has a New and Renewable Sources of Energy (NRSE) Policy-2012, under which PEDA has commissioned 68.5 MW of rooftop PV projects and 422.50 MW of solar photovoltaic power projects out of the total 990 MW allocated by the agency.

The last date of e-bid submission is September 23, 2016, while technical bids will be opened on September 26, 2016. More information on the bid can be seen here.