Wind Energy Producer Not Entitled For Payment For Power Supply Post PPA Period: RERC

The Rajasthan Electricity Regulatory Commission (RERC), in its latest order, has rejected a petition filed by Intech Systems Chennai Pvt. Ltd, a wind energy generator. The green energy firm had earlier sought payment for the electricity supplied from its wind project after the expiry of a Power Purchase Agreement (PPA) with state distribution utilities.

The dispute arose over electricity injected into the grid between April and August 2024, a period between the expiry of the earlier power purchase agreement (PPA) and the signing of a new commercial arrangement for open access sales.

Developer Seeks Payment for Intervening Period

Intech Systems argued that it should be paid ₹1.38 crore for power generated during the five-month period. The company said it had initiated the process to shift to open access well before the PPA expired.

According to the petitioner, it applied for a no-objection certificate (NOC) in November 2023 to sell electricity through power exchanges. The approval from Rajasthan Renewable Energy Corporation Limited was granted in February 2024, shortly before the PPA expired on March 13, 2024.

The company claimed that delays by state utilities in finalising the commercial agreement — which was eventually signed in August 2024 — resulted in electricity being injected into the grid without payments.

It argued that the power was scheduled, metered and consumed by the utilities and also contributed toward their renewable purchase obligations.

Citing provisions of the Indian Contract Act and earlier regulatory rulings, the company said the utilities could not benefit from electricity without compensating the generator.

Discoms Say No Contract, No Payment

The respondent utilities, represented through Rajasthan Urja Vikas and IT Services Limited, countered that the PPA had expired and therefore no contractual relationship existed during the disputed period.

They said the developer had been informed in advance, through a letter dated February 26, 2024, that the utilities would not be obligated to procure power once the agreement ended.

The utilities also argued that the generator had already obtained permission to sell power through open access and could have sold electricity on the exchange instead of injecting it into the grid.

Commission Rejects Quasi-Contract Claim

The commission dismissed the petition, ruling that the conditions required to invoke compensation under quasi-contract principles were not met.

According to the regulator, electricity injected without a valid agreement cannot be considered a lawful supply when the buyer has clearly stated it will not procure the power.

Because the utilities had communicated their position in advance, the developer could not claim it supplied electricity under a reasonable expectation of payment, the commission said.

NoC Did Not Extend PPA

The regulator also clarified that the NOC issued by the renewable energy agency related only to the developer’s future open access arrangements and had no bearing on obligations under the expired PPA.

With no contractual or quasi-contractual liability established, the commission rejected the petition and closed the proceedings.