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The Central Electricity Regulatory Commission (CERC) has issued an order on 31 August 2025 in two connected petitions, 324/MP/2025 and 279/MP/2025, filed by Avaada Energy Private Limited (AEPL) and its subsidiary Avaada GJClean Private Limited (AGPL). The case revolved around the approval for a change in the renewable energy source and the acceptance of project documents in the name of the subsidiary company.
AEPL had originally applied for connectivity of 50 MW at Jam Khambhaliya pooling sub-station in Gujarat with a hybrid source of 25 MW solar and 25 MW wind. This connectivity was granted in principle on 17 November 2023, and final approval was issued on 1 February 2024. Subsequently, AEPL participated in a tender conducted by REC Power Development and Consultancy Limited and was awarded a Letter of Award on 6 February 2024 for a 50 MW wind project in Dev Bhoomi Dwarka, Gujarat. Following this, AEPL requested CTUIL on 22 January 2025 to approve a change of source from hybrid to wind-only as per Clause 5(xiii) of the Detailed Procedure under GNA Regulations 2022. However, CTUIL neither accepted nor rejected the request, which caused delays in project registration with GEDA.
AGPL, a wholly owned subsidiary of AEPL, was incorporated as the Special Purpose Vehicle to execute the project and signed a Power Purchase Agreement on 30 August 2024 with Damodar Valley Corporation for supplying 50 MW of wind power. AEPL submitted that the project implementation was already advanced, with land acquisition completed, contracts awarded, equipment ordered, and site mobilization underway, while financial closure was pending lender approval.
In its parallel petition, AEPL sought relaxation under Regulations 41 and 42 of the GNA Regulations to allow submission of land and financial closure documents in the name of AGPL instead of AEPL. They argued that similar reliefs had been granted earlier in cases of ACME Solar Holdings and Tata Power Renewable Energy, where documents were accepted in the name of subsidiaries even though connectivity was granted to the parent companies.
During hearings, the Delhi High Court had granted interim protection to AEPL on 3 February 2025, restraining CTUIL from revoking connectivity or encashing the bank guarantee until CERC considered the case. Later, CTUIL confirmed before CERC that the issues raised were already addressed in earlier orders of May and June 2025, where the Commission allowed land and financial closure documents to be accepted in the name of subsidiaries executing the projects.
In its final decision, CERC directed CTUIL to process AEPL’s application for renewable source change within 30 days of the order. It also confirmed that submission of land and financial closure documents could be made in the name of AGPL, the subsidiary implementing the project, while connectivity remained in AEPL’s name. With this, CERC disposed of both petitions and related interlocutory applications, observing that the reliefs sought had been addressed.
This decision clarifies that developers can seek a change of renewable source under Clause 5(xiii) of the Detailed Procedure and that subsidiaries executing projects on behalf of parent companies can submit required documents for compliance under GNA Regulations. It provides regulatory certainty for renewable developers managing projects through Special Purpose Vehicles.
