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The Haryana Electricity Regulatory Commission (HERC) passed an order on April 9, 2025, in Case No. 64 of 2023, which involved a petition filed by the Haryana Power Purchase Centre (HPPC). The case revolved around the shortfall in the supply of contracted wind energy during the financial year 2022–2023 under a 250 MW Wind Power Power Sale Agreement (PSA) dated December 13, 2017, executed with the Solar Energy Corporation of India (SECI). HPPC sought compensation for the shortfall in supply as per Clause 6.8.3 of the PSA.
M/s Nani Virani Wind Energy Pvt. Ltd., the wind power developer, was responsible for supplying 50 MW of wind power under a Power Purchase Agreement (PPA) with SECI. The project was commissioned in phases, with 10 MW each being operational from September 2021, March 2022, and May 2022, totaling 30 MW. However, due to commissioning delays and force majeure events including the collapse of a 220 kV transmission tower caused by heavy rains, the remaining 20 MW capacity was cancelled by SECI on February 20, 2023.
As per the contractual terms, the developer was required to supply 7,26,28,807 units (kWh) of energy during the first contract year starting from May 13, 2022, to March 31, 2023. However, the actual energy supplied was only 1,22,14,408 units, resulting in a shortfall of 6,04,14,399 units. HPPC requested the Commission to determine the compensation amount payable for this shortfall.
The developer claimed exemption from compensation under force majeure provisions, citing a prolonged shutdown from July 12, 2022, to December 6, 2022, due to the damaged transmission line. However, HPPC argued that the developer did not follow the mandatory communication and documentation process required under the agreement to validate the force majeure claim. SECI had also rejected the developer’s request for an extension of the commissioning deadline on similar grounds, citing a lack of official flood notification.
SECI confirmed the energy supplied by the developer during the specified period and supported HPPC’s request for compensation, stating that the claim must be resolved as per the terms agreed under the PSA and PPA.
HPPC further submitted a detailed computation of the compensation. Based on the average monthly market rates on the Indian Energy Exchange (IEX), the Renewable Energy Certificate (REC) rate, and the tariff paid to SECI (₹2.72/kWh), the financial loss due to the shortfall was calculated. The total compensation payable for the shortfall of 6.04 crore units under the PSA was estimated at ₹22.17 crore, while the compensation based on the PPA shortfall of 5.89 crore units was ₹21.61 crore.
The Commission heard detailed arguments from all parties and examined relevant provisions of the PSA and PPA, including the definitions of contract year, capacity utilization factor (CUF), and force majeure. The matter remains under review for the final determination of the compensation amount payable by the developer to HPPC.
