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APTEL Orders Tariff Review For 10 MW Punjab Rooftop Solar
ECONOMY & POLICY

APTEL Orders Tariff Review For 10 MW Punjab Rooftop Solar

The Appellate Tribunal for Electricity (APTEL) granted partial relief to Radiance Punjab Renewable Private Limited in a dispute over its 10 megawatt (MW) rooftop solar project in Punjab. The Punjab State Electricity Regulatory Commission (PSERC) had reduced the contracted tariff from Rs seven point five nine per kWh to Rs five point zero nine per kWh after recognising only a 29-day delay in achieving the Commercial Operation Date (COD). The developer contested the order and sought recognition of further delays as Force Majeure.

The project began in March 2015 when the developer's predecessor won a competitive bid by the Punjab Energy Development Agency (PEDA) and signed an Implementation Agreement and a Power Purchase Agreement (PPA) with the Punjab State Power Corporation Limited (PSPCL). The PPA required commissioning within 10 months. The company said factors beyond its control caused the delays.

In its appeal the company identified three delay periods: a 41-day lapse in regulatory approval of the PPA, 127 days lost to site finalisation and grid connectivity, and a 10-day disruption from the Jat agitation. The state utilities argued the developer failed to issue a formal Force Majeure notice, but APTEL observed that a PPA becomes enforceable only after State Commission approval and that the delay in approval was the responsibility of the state utility, so it allowed the 41-day extension. The Tribunal upheld PSERC's calculation on the site and grid delays.

APTEL declined relief for the 10-day Jat agitation period because the developer had not served the mandatory contractual notice. The tribunal partly allowed the appeal and directed PSERC to recalculate delays for each of the nine rooftop solar sites and to determine the applicable tariff on the revised timelines. Regulators will therefore revisit tariff outcomes for the affected projects.

The Appellate Tribunal for Electricity (APTEL) granted partial relief to Radiance Punjab Renewable Private Limited in a dispute over its 10 megawatt (MW) rooftop solar project in Punjab. The Punjab State Electricity Regulatory Commission (PSERC) had reduced the contracted tariff from Rs seven point five nine per kWh to Rs five point zero nine per kWh after recognising only a 29-day delay in achieving the Commercial Operation Date (COD). The developer contested the order and sought recognition of further delays as Force Majeure. The project began in March 2015 when the developer's predecessor won a competitive bid by the Punjab Energy Development Agency (PEDA) and signed an Implementation Agreement and a Power Purchase Agreement (PPA) with the Punjab State Power Corporation Limited (PSPCL). The PPA required commissioning within 10 months. The company said factors beyond its control caused the delays. In its appeal the company identified three delay periods: a 41-day lapse in regulatory approval of the PPA, 127 days lost to site finalisation and grid connectivity, and a 10-day disruption from the Jat agitation. The state utilities argued the developer failed to issue a formal Force Majeure notice, but APTEL observed that a PPA becomes enforceable only after State Commission approval and that the delay in approval was the responsibility of the state utility, so it allowed the 41-day extension. The Tribunal upheld PSERC's calculation on the site and grid delays. APTEL declined relief for the 10-day Jat agitation period because the developer had not served the mandatory contractual notice. The tribunal partly allowed the appeal and directed PSERC to recalculate delays for each of the nine rooftop solar sites and to determine the applicable tariff on the revised timelines. Regulators will therefore revisit tariff outcomes for the affected projects.

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