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How Regulatory Vacuum, Legal Uncertainty Delayed Gujarat's Hybrid Project Photograph: (Archive)
The Gujarat Electricity Regulatory Commission (GERC), in its latest order, has granted an extension to selected clean energy companies to commission an 85 MW wind-solar hybrid project, part of a 200 MW project. The companies had approached the state power regulator, citing delays owing to a regulatory vacuum in the state and a cyclone that disrupted project execution.
The petitioners in the case — KP Energy Limited, ABREL Century Energy, Aditya Birla Renewables Solar Ltd, and Aditya Birla Renewables SPV 4 Ltd — had earlier approached the regulator seeking its intervention. The petitioners stated that there was a change in connectivity conditions.
They said that the detailed procedure for the grant of connectivity, 2023, introduced a requirement to commission 100% RE generation capacity within two years of receiving charging permission, replacing the previous requirement to commission 100% of the evacuation system infrastructure within two years. This shift, they alleged, fundamentally changed the timeline requirements.
RE Policy Gap
They also noted that the Gujarat Wind Solar Hybrid Policy 2018 expired on 18.06.2023, and the new policy was introduced on 04.10.2023, creating a regulatory gap of 108 days. They also stated that due to Cyclone Biparjoy in June 2023, there were disruptions in the supply chain and site accessibility.
The respondents in the case — GETCO and GEDA — said that the petitioners were aware of the policy expiry in June 2023 and should have commissioned the project earlier. They also rejected the claims of force majeure events, stating that regular monsoon and high wind seasons are considered in project planning.
GERC's Observations
GERC rejected multiple grounds for extension raised by the petitioners, including the lack of substantiation for claims regarding Cyclone Biparjoy and unfavorable weather, right-of-way issues, delay in equipment delivery (WTG/transformer), and banking facility clarification.
However, it qualified two conditions as force majeure events. It considered redesigning and restructuring delays due to changes brought by the new Gujarat Renewable Energy Policy, 2023, acknowledged a regulatory vacuum, and stated that this period of uncertainty was beyond the petitioner’s control.
It also noted that delays due to legal uncertainty regarding developer permission and transfer permission of connectivity also accounted as force majeure.
In its order, it said, “Based on the above, we decide that the Petitioner is eligible to get an extension for setting up and commissioning its uncommissioned project capacity of 85 MW, out of the allocated capacity of 140 MW, due to a Force Majeure event, for a period of 678 days.”