GERC Sets Aside DGVCL Decision, Orders Open Access For RE Generator

The Gujarat Electricity Regulatory Commission (GERC), in its latest order, has set aside Dakshin Gujarat Vij Company Ltd’s (DGVCL) decision to deny medium-term open access to a renewable energy developer. J.B. Renewable LLP, the petitioner, had approached the regulator after it was prevented from selling wind power to its group entity under the open access mechanism.

GERC found DGVCL’s rejection “arbitrary” and contrary to the state’s open access regulations, stating that the utility had misinterpreted the Gujarat Wind Power Policy, 2016. The regulator has now directed DGVCL to grant medium-term open access with retrospective effect from Sept. 1, 2019.

Case Details

J.B. Renewable LLP operates a 2.10 MW wind project in Kutch. The company had applied for long-term open access to supply power to J.B. Ecotex LLP, a manufacturing unit with a contract demand of 5,000 kVA. DGVCL denied the request, citing what it claimed was a rule restricting wind power wheeling to 50% of the consumer’s contract demand. The petitioners subsequently challenged the decision under the GERC (Intra-State Open Access) Regulations, 2011.

In its arguments before the commission, the renewable energy firm said the 50% cap under the 2016 policy was applicable only to captive consumption by non-MSME consumers, not to third-party sales. The company said the open access regulations imposed no such limit. It also sought credit for 2.57 million units injected into the grid between September 2019 and February 2020, after GETCO granted open access and collected transmission charges.

GERC’s Observations

The regulator held that the 50% restriction under the Gujarat Wind Policy, 2016 applied only to captive use, as argued by the petitioners. It rejected DGVCL’s interpretation and said the discom’s stand was inconsistent with the open access regulations.

While J.B. Renewable LLP was Petitioner No. 1, J.B. Ecotex LLP was Petitioner No. 2 in the case.

“The denial of MTOA by DGVCL vide letter dated 30.08.2019 is quashed and set aside as arbitrary and ultra vires the GERC Open Access Regulations, 2011. DGVCL is directed to grant MTOA and execute necessary wheeling agreement with retrospective effect from 01.09.2019 for 2.10 MW under third-party sale from Petitioner No. 1 to Petitioner No. 2. DGVCL shall give effect of duly verified monthly setoff of 25,69,247 units of wind energy injected between September 2019 and February 2020 in the electricity bills of Petitioner No. 2,” the GERC order said.