APTEL Restores 80MW Wind Power PPA For Wind Energy Firm

APTEL Restores 80MW Wind Power PPA For Wind Energy Firm

In a significant ruling for renewable energy developers, the Appellate Tribunal for Electricity (APTEL) has set aside an Andhra Pradesh state regulator’s order that had upheld the termination of a large portion of a wind power agreement in Andhra Pradesh.

The tribunal ruled in favour of Guttaseema Wind Energy Company Pvt Ltd, which operates an 80MW wind project in the state. The project was partially derailed when the Southern Power Distribution Company of Andhra Pradesh Ltd. (APSPDCL) attempted to terminate the Power Purchase Agreement (PPA) for 60 MW of the project in 2020, citing delays in commissioning.

Guttaseema had signed the PPA in May 2016 at a tariff of ₹4.84/kWh, with the first 10 MW commissioned in March 2018 and another 10 MW in February 2019. By May 2019, the next 20MW capacity was ready for synchronization, but APSPDCL failed to take action. In July 2020, the discom issued a notice unilaterally amending the PPA to restrict it to the 20 MW already synchronized and terminated the remaining 60 MW.

The Andhra Pradesh Electricity Regulatory Commission upheld the termination in April 2022, interpreting clauses in the PPA to mean the entire project had to be commissioned within two years of signing.

APTEL disagreed, calling the regulator’s order “absolutely perverse”. It ruled that the synchronization date of the first unit should be treated as the commercial operation date (COD) for the entire project, based on Article 1.4 of the PPA. Since the first unit was commissioned within the two-year deadline, the tribunal said the entire project must be considered compliant.

“Once the PPA was signed, approved, and acted upon with the clause treating the first unit’s synchronization as project COD, the Commission could not later ignore it,” APTEL said in its order dated May 29.

The tribunal also criticized the discom and the regulator for violating the principle of estoppel, noting that the discom had allowed commissioning of the second unit post-deadline without objection.

As part of its directive, APTEL:

• Quashed APSPDCL’s termination notice of July 2020,

• Restored the full 80MW PPA,

• Ordered immediate synchronization of the 20MW pending since 2019,

• And directed that Guttaseema be granted deemed generation benefits for this capacity from May 2019.

The order clears the way for synchronization of the final 40MW, reaffirming the rights of renewable developers under long-term PPAs.