Assam Discom Issues EoI For 357 MW Project Under PM-KUSUM Comp-A

Assam Power Distribution Company Ltd (APDCL), has floated a tender to develop 357 MW of solar capacity under Component-A of the PM-KUSUM scheme. Bids will be accepted until May 8, 2025.

The Assam Discom’s latest tender for 357 MW solar project under PM KUSUM will be spread across 272 locations, ranging from Nagaon ESD-II in Itapara, Juria, and Deodhar to the Jorhat Electrical Circle in Assam. APDCL has invited bids to install decentralized grid- Connected Ground/ Stilt Mounted Solar Based Power Plants of capacity 500 KW to 2 MW on Barren / uncultivable and agricultural land falling within a radius of 5KM from 33/11 KV Substations notified by APDCL.

The tender stated, “The selected Solar Power Generator (SPG) will have 15 months from the date of issuance of the Letter of Award (LoA) to commission the project, according to the tender document. The tender also places penalties for delays beyond the commissioning deadline.”

The tender explained for delays of up to six months, APDCL will deduct a proportionate amount from the Performance Bank Guarantee (PBG) based on the uncommissioned capacity. If the delay exceeds six months, the Power Purchase Agreement (PPA) capacity will be amended to match the commissioned capacity at the end of the six months.

Tariff For Purchasing Power From Solar Power Generator

The tender mandated the SPG to maintain a minimum annual Capacity Utilization Factor (CUF) of 16% throughout the PPA. In case of shortfalls, the SPG must compensate APDCL for the deficit in energy supply as outlined in the PPA. The tender specifies a levelized tariff of Rs 3.23/kWh, approved by the Assam Electricity Regulatory Commission (AERC), for power procured from ground-mounted solar plants where the aggregate applied capacity does not exceed the notified spare capacity at a substation. In such cases, all eligible applicants will be issued LoAs.

Additionally, the tender mentioned, “If the aggregate capacity exceeds the notified capacity at a substation, APDCL will conduct a competitive bidding process. The AERC-approved tariff of Rs 3.23/kWh will serve as the ceiling tariff, and bidders offering the lowest rates will be selected. For grid-connected solar plants installed on stilts—mandatory at certain substations—the ceiling tariff has been set at Rs 3.30/kWh, with project allocation to be determined through bidding.”

Frequently Asked Questions (FAQs) – Related Questions Asked On SolarFaqs

What is the PM-KUSUM scheme, and how does it benefit farmers in Assam?

The PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) scheme is a government initiative to promote solar energy in rural areas. Under Component-A, farmers in Assam can lease their land to set up small solar power plants (up to 2 MW) near 33/11 kV substations. This allows farmers to earn extra income from their land while contributing to clean energy production. The 357 MW project by Assam Power Distribution Company Limited (APDCL) aims to make this opportunity accessible to farmers across the state.

Who can participate in the 357 MW solar project in Assam?

Farmers, landowners, or developers interested in setting up solar power plants can participate. The project requires land within a 5 km radius of APDCL’s 33/11 kV substations. Participants need to submit an Expression of Interest (EOI) by May 8, 2025, as per the tender issued by APDCL. The scheme encourages local farmers to collaborate with solar developers to install decentralized solar plants.

How will this solar project help Assam’s environment and energy needs?

The 357 MW solar project will generate clean, renewable energy, reducing Assam’s dependence on fossil fuels. By producing solar power locally, it will lower carbon emissions and help combat climate change. Additionally, the decentralized nature of these solar plants ensures a stable power supply for agricultural and rural areas, improving energy access and reliability.

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What is Component-A of PM-KUSUM?

Component-A focuses on setting up decentralized, grid-connected solar power plants up to 2 MW capacity each, primarily on barren or unused farmland. These plants help generate clean electricity locally and feed it into the grid.