Punjab Floats Tender for 40 MW Canal-Top Solar Projects

Punjab is tapping its canal network to scale up solar power, announcing an Expression of Interest (EOI) for 40 MW of canal-top solar PV projects. The initiative, led by the Punjab Energy Development Agency (PEDA), follows a Build, Own and Operate (BOO) model, aiming to generate clean energy while bypassing land acquisition challenges in the state.

The pre-bid meeting is set forSeptember 19, with submissions closing on September 29. Interested developers can access the detailed EOI documents on the state’s e-procurement portal.

Innovative approach to land scarcity

Land availability has long constrained Punjab’s solar ambitions. By utilising canal tops, PEDA is turning existing infrastructure into renewable energy hubs. The move builds on the success of earlier 20 MW canal-top projects commissioned in 2017-18, which are already feeding clean power into the grid.

What developers need to do

Selected developers will identify suitable canal sites with the Water Resources Department (WRD), design and construct their projects, and connect them to Punjab State Power Corporation Ltd (PSPCL) substations. They will also handle approvals, funding, and long-term operations. Power will be sold to PSPCL under long-term PPAs at a tariff of ₹3 per unit, subject to regulatory approval.

Key terms at a glance

• Minimum project size: 1 MW; maximum 50% of total capacity per bidder.

• Non-refundable EOI fee: ₹5,000 plus GST; EMD: ₹10 lakh per MW.

• Annual canal lease: ₹1.5 lakh per MW, plus a cess of 1.5 paisa per unit to WRD.

• Lease period: 28 years, with renewal options.

• Developers bear costs for transmission and canal maintenance near project sites.

If multiple bidders compete for the same site, PEDA will conduct offline reverse bidding. Implementation will be formalized through agreements with PEDA, WRD, and developers, alongside PPAs with PSPCL.