PSPCL 500 MW Solar Auction Results: SAEL Wins 250 MW at Rs 3.05/kWh

Key Takeaways

• Agency: Punjab State Power Corporation Limited (PSPCL)
• Capacity: 500 MW solar power procurement
• Results announced: April 2026
• Tender issued: January 2025
• L1 (lowest) tariff: Rs 3.05 per kWh (SAEL Industries)
• Tariff range: Rs 3.05 to Rs 3.07 per kWh
• PPA duration: 25 years from supply commencement
• Winner summary: SAEL (250 MW), Waaree Forever (100 MW), MB Power (100 MW), JLTM Energy (50 MW)

What Is This Auction?

Punjab State Power Corporation Limited (PSPCL) — the principal power distribution and generation utility for Punjab — announced the results of its 500 MW solar power auction in April 2026, closing out a procurement process that was initiated in January 2025.

The auction aims to procure solar power on a long-term basis from projects located anywhere in the country — an "across India" model where developers site their plants in high-irradiance states (like Rajasthan or Gujarat) and supply power to PSPCL via interstate transmission infrastructure.

With discovered tariffs of Rs 3.05–3.07 per kWh, the PSPCL auction reflects a slightly higher tariff environment than Gujarat's (Rs 2.34/kWh) or SECI utility-scale procurements. The difference reflects Punjab's geographic disadvantage (lower irradiance than Rajasthan/Gujarat for in-state projects), higher grid connectivity costs for interstate projects, and PSPCL's specific procurement terms and credit profile.

Auction Results

SAEL Industries — part of the SAEL Group, an Indian renewable energy developer — won the largest allocation of 250 MW with the most competitive tariff of Rs 3.05/kWh. SAEL has been an active participant across multiple state and SECI solar auctions in 2025–26, including winning in SECI Tranche XX.

Waaree Forever Energies is a renewable energy development subsidiary of Waaree Energies, India's largest solar module manufacturer. Its participation in PSPCL's auction reflects the company's strategy of developing solar IPP projects alongside its dominant module business.

MB Power (Madhya Pradesh) (part of Hindustan Power group) secured 100 MW through the bucket-filling method — a process where, after the initial bid evaluation, developers who bid at the second-lowest tariff are offered additional capacity at the L1 rate if the L1 winner cannot absorb full capacity or if additional capacity is available.

JLTM Energy India is the Indian subsidiary of Technique Solaire, a European solar developer.

Project Structure and Eligibility

PSPCL's tender was designed with flexibility to attract commercially established projects:

Eligible project types:

• Under-construction solar projects without existing PPAs
• Commissioned projects currently without long-term PPAs
• Solar assets on short-term or merchant (market) arrangements
• Projects not yet covered under any central or state scheme

This eligibility structure — covering both new and partially operational projects — is designed to bring additional solar capacity to PSPCL's portfolio quickly, rather than waiting for greenfield projects to be developed from scratch.

Developer responsibilities:

• All costs for grid connectivity to the delivery point
• Long-term access charges
• Wheeling charges
• Transmission losses to the delivery point

Available incentives for winners:

• Accelerated depreciation benefits
• Concessional customs and excise duties (for eligible imports)
• Carbon credit trading opportunities
• Financial support via Punjab's renewable energy programme

Punjab's Solar Procurement Context

Punjab presents a distinctive solar procurement environment compared to solar-rich states like Rajasthan, Gujarat, or Telangana:

Irradiance: Punjab receives approximately 4.5–5.0 kWh/m2/day of Global Horizontal Irradiance — lower than Rajasthan (5.5–6.2 kWh/m2/day) or Gujarat (5.2–5.8 kWh/m2/day). This makes Punjab less competitive for in-state solar plant siting, which is why PSPCL procures from projects "located across the country."

Agricultural load: Punjab's grid has a high proportion of agricultural load (subsidised or free power for farmers), which creates significant financial pressure on PSPCL. Cheaper solar procurement is therefore a strategic priority for PSPCL to reduce its average power purchase cost.

Grid management: Punjab's grid is managed by PSPCL with grid stability requirements tied to its large baseload thermal fleet and agricultural feeder management. Interstate solar procurement (from projects in Rajasthan or elsewhere) requires careful management of transmission scheduling and deviation settlement.

ALMM compliance: While not explicitly flagged in the auction announcement, all government solar procurement in India now operates under the MNRE's ALMM framework. Project developers must source modules from ALMM List-I approved manufacturers and cells from ALMM List-II approved manufacturers.

What This Means for Punjab Industrial Solar Buyers

Tariff benchmark: The Rs 3.05–3.07/kWh discovered tariff is the rate PSPCL pays developers for bulk solar procurement. Industrial consumers in Punjab on PSPCL's high-tension commercial or industrial tariffs currently pay Rs 6–9/kWh depending on voltage level and consumption. Even after adding open-access charges, industrial captive solar offers substantial savings.

HERC open-access environment: Punjab's solar open-access regulations are governed by the Haryana Electricity Regulatory Commission... no, in Punjab's case, by PSERC (Punjab State Electricity Regulatory Commission). Industrial consumers above certain load thresholds can access open-access solar from third-party developers. The competitive PSPCL procurement environment — and the Rs 3.05/kWh tariff signal — suggests that open-access solar in Punjab can be competitively priced.

Rooftop solar: For smaller industrial and commercial consumers in Punjab, rooftop solar under PSPCL's net metering policy remains the most accessible solar option. PM Surya Ghar subsidies apply to eligible consumers.

Industrial buyers in Punjab and Haryana can review our guide on solar EPC for industrial projects in Punjab for a comprehensive overview of procurement options, regulatory environment, and EPC selection considerations.

Comparison: Punjab vs Other State Auction Tariffs

PSPCL's Rs 3.05/kWh tariff sits between the utility-scale GUVNL auction (Rs 2.34/kWh) and SECI's solar-plus-storage Tranche XXI (Rs 3.12–3.13/kWh). The higher tariff relative to GUVNL reflects the interstate transmission and wheeling cost structure inherent in PSPCL's cross-India procurement model.

Frequently Asked Questions

What was the lowest tariff discovered in PSPCL's 500 MW solar auction?

Rs 3.05 per kWh, bid by SAEL Industries, which won 250 MW at this rate. The next tranche of winners (Waaree Forever, MB Power, JLTM Energy) bid at Rs 3.07 per kWh.

Can the projects be located anywhere in India?

Yes. PSPCL's tender allows projects to be located anywhere in India, provided they can supply power to PSPCL's delivery point via the interstate transmission network. This enables developers to site plants in high-irradiance states like Rajasthan or Gujarat for better project economics.

When was this tender originally issued?

The tender was originally issued in January 2025. The auction results were announced approximately 15 months later in April 2026, reflecting the typical multi-stage evaluation process for large state utility solar procurements.

What is the bucket-filling method used for MB Power's 100 MW allocation?

In the bucket-filling method, if the L1 (lowest) bidder cannot supply the full tendered capacity, or if additional capacity is needed, other bidders can be allocated capacity at the L1 tariff rate. In this case, MB Power bid at Rs 3.07/kWh but was offered capacity at the prevailing allocation tariff through this mechanism.

What does this mean for industrial buyers currently on PSPCL grid?

The auction's discovered tariff (Rs 3.05/kWh) is the wholesale rate PSPCL pays for solar power. Industrial consumers pay significantly higher all-in rates (Rs 6–9/kWh). Open-access or captive solar can reduce effective costs substantially. The active PSPCL auction confirms a favourable policy environment for renewable energy in Punjab.

Sources

• PSPCL Announces Results of 500 MW Solar Auction — Renewable Watch (April 24, 2026)
• Purvah, SAEL Among Winners of SECI's 2 GW Solar, 4 GWh Energy Storage Auction — Mercom India
• SECI Concludes 2,000 MW Solar and 1,000 MW/4,000 MWh Energy Storage Auction at Rs 2.86/kWh — SolarQuarter