Punjab Powers Ahead: Over 2,400 MW of Solar Deals Inked, Backed by Historic Low Tariffs : Harbhajan Singh ETO

Punjab Powers Ahead: Over 2,400 MW of Solar Deals Inked, Backed by Historic Low Tariffs : Harbhajan Singh ETO

Chandigarh, April 29

Punjab has taken significant steps toward a greener and more sustainable future through a series of successful solar energy procurement initiatives.

Disclosing this here today in a press communique, Power Minister of Punjab, Harbhajan Singh ETO informed that Punjab State Power Corporation Limited (PSPCL) has inked major tender for solar power procurement, issuing a Letter of Intent to M/s SAEL Industries Ltd. on April 15, 2025.

He said that under this agreement, 400 MW of solar power will be procured at a competitive tariff of Rs. 2.97 per unit for a period of 25 years. The solar projects will be set up within Punjab, supporting local infrastructure and employment.

Mr. Harbhajan Singh ETO further said that in a related development, PSPCL has also granted in-principle consent to M/s Solar Energy Corporation of India (SECI) under various ISTS schemes for the procurement of 1,950 MW of solar power. The tariff for this power ranges between Rs. 2.48 and Rs. 2.60 per unit (landed tariff of Rs. 2.95–3.07 per unit approx.), also for a 25-year duration.

The Minister said that two solar power projects have recently become operational and have started supplying electricity to PSPCL. A 107.14 MW solar power project, commissioned by NHPC under the CPSU Scheme of MNRE, began commercial operations on April 14, 2025. This project is part of a larger 300 MW plant located in Bikaner, Rajasthan, with electricity being supplied to PSPCL at a tariff of Rs. 2.45 per unit (landed tariff of Rs. 2.55 per unit approx.). Another 100 MW project, developed under SECI’s ISTS Tranche IX Scheme, was synchronized with the grid on April 15, 2025. This project forms part of a 300 MW development situated in Jodhpur, Rajasthan, and supplies power at a tariff of Rs. 2.36 per unit (landed tariff of Rs. 2.72 per unit approx).

Further strengthening the state’s renewable energy infrastructure, the Ministry of Power, Government of India, has allocated 500 MWh of Battery Energy Storage System (BESS) capacity to Punjab. The project, to be implemented by PSPCL, is supported by a Viability Gap Funding (VGF) of ₹18 lakh per MWh and is scheduled for commissioning by May 2027. The BESS will store solar energy generated during the day for use during peak evening hours, enhancing grid reliability and energy efficiency.

The Power Minister said that these developments mark a critical leap toward Punjab’s clean energy transition and demonstrate the state’s commitment to sustainable growth.

“All these significant strides in solar energy procurement and renewable infrastructure have been made possible under the visionary and able leadership of our Chief Minister, Bhagwant Singh Mann. His unwavering commitment to a greener Punjab is driving our state toward a cleaner, more sustainable energy future,” said Harbhajan Singh ETO.