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The Central Electricity Regulatory Commission (CERC) has ruled on the Petition, filed by Juniper Green Energy Private Limited against Damodar Valley Corporation (DVC) and REC Power Development and Consultancy Limited (RECPDCL). The petitioner sought a declaration that its bid for a 50 MW wind power project, submitted on September 17, 2023, had expired on June 30, 2024, and that it was no longer required to execute a Power Purchase Agreement (PPA) with DVC. It also requested the return of its Bank Guarantee.
The petitioner had won the bid through a competitive process for setting up a 50 MW wind power project at a tariff of ₹3.58 per unit. A Letter of Award (LoA) was issued on February 6, 2024, but the signing of the PPA was delayed due to pending tariff adoption by CERC. The petitioner extended the bid validity period until June 30, 2024, after which it declined further extensions, citing increased project costs and challenges in securing wind turbines due to market conditions.
DVC and RECPDCL argued that the PPA was to be executed only after the tariff adoption, as per the bidding guidelines. They maintained that all procedures had been followed, and the petitioner was obligated to sign the PPA after tariff adoption on August 1, 2024. The respondents asserted that the bid process remained valid and that the petitioner was attempting to withdraw due to financial reasons rather than procedural lapses.
The commission ruled in favor of DVC and RECPDCL, stating that the petitioner was aware that PPA execution was subject to tariff adoption. It held that the bid remained valid when DVC applied for tariff adoption before June 30, 2024. The petitioner’s refusal to execute the PPA was deemed unjustified. Consequently, CERC denied the petitioner’s requests, upheld the validity of the bid, and rejected the demand for a refund of the Bank Guarantee.
