Reading Time: 3 minutes
The Appellate Tribunal for Electricity has delivered a significant judgment in favor of M/s Tanot Wind Power Venture Pvt. Ltd. in a case against the Rajasthan Electricity Regulatory Commission. The ruling, Appeal No. 108 of 2018, was announced on September 9, 2025, by Judicial Member Mr. Virender Bhat and Technical Member Mr. Sandesh Kumar Sharma. This judgment marks an important development in the renewable energy sector as it addresses the issue of backing down, a practice where electricity generation is curtailed by the grid operator or regulatory authority.
The dispute began when the Rajasthan Electricity Regulatory Commission issued an order in Petition No. 847 of 2016, which resulted in the backing down of the appellant’s wind power project. M/s Tanot Wind Power Venture Pvt. Ltd. challenged the decision, arguing that its wind project should be treated as a must-run facility in line with grid codes and statutory provisions. The company pointed out that curtailment of its project was not only unfair but also unlawful, leading to financial losses. The Tribunal carefully examined the matter and found that the order passed by the Rajasthan Commission was flawed. It concluded that the backing down of the wind project was unlawful and inconsistent with the legal protections granted to renewable energy projects.
The Tribunal’s decision set aside the earlier order of the Rajasthan Electricity Regulatory Commission. It reinforced the principle that renewable projects such as wind power plants enjoy must-run status under the existing regulatory framework. This status means they should not be subjected to arbitrary curtailment unless there are exceptional grid security reasons. By siding with the wind power developer, the Tribunal emphasized the importance of safeguarding investments in renewable energy and ensuring compliance with established laws.
A major focus of the judgment was the question of compensation. The Tribunal directed the Rajasthan Electricity Regulatory Commission to compensate M/s Tanot Wind Power Venture Pvt. Ltd. for the loss of generation caused by the unlawful backing down. The order requires the state commission to complete the process of assessing the losses and issue a consequential order within three months from the date of judgment. This ensures that the developer receives timely redress for the financial setbacks suffered due to the regulatory actions.
Additionally, the Tribunal instructed the Rajasthan Commission to consider other claims raised by the appellant for consequential relief. These claims include not only the direct generation losses but also other financial impacts that arose because of the unlawful order. The Commission has been asked to evaluate these claims carefully and pass appropriate orders within the same three-month period, providing detailed reasons for its conclusions.
The comprehensive nature of the Tribunal’s ruling is aimed at making the developer whole and preventing the recurrence of such disputes. By holding the regulatory commission accountable, the judgment underscores the legal safeguards available to renewable energy projects and the need for strict adherence to statutory provisions. This case serves as a reminder that regulatory decisions must align with the rights and protections granted to clean energy developers under the law. It also highlights the role of appellate forums in ensuring fair treatment and reinforcing confidence among investors in the renewable energy sector.
The ruling is being seen as a landmark decision for the renewable energy industry, particularly for wind developers, as it sets a precedent that unlawful backing down will not be tolerated and compensation will be ensured in such cases.
