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The Gujarat Electricity Regulatory Commission (GERC) has delivered a significant ruling regarding the timely completion of a wind power project managed by ACME Eco Clean Pvt. Limited. The decision, under Petition No. 2385 of 2024, addressed ACME’s request for an extension of its Scheduled Commercial Operation Date (SCOD) due to events the company claimed were beyond its reasonable control.
ACME Eco Clean Pvt. Limited had signed a Power Purchase Agreement (PPA) with Gujarat Urja Vikas Nigam Limited (GUVNL) on May 10, 2023. According to the company, delays in its project timeline were due to circumstances that qualified as a ‘Force Majeure’ event. Force Majeure is a legal provision under Article 8 of the PPA that excuses performance when unforeseen events prevent timely completion. The case also involved Gujarat Energy Transmission Corp. Ltd. (GETCO) as a respondent.
In its review, GERC found that ACME’s petition was partly successful. The Commission acknowledged that a specific delay cited by the company indeed qualified as a Force Majeure event under the terms of the PPA dated December 14, 2022. This delay was primarily linked to GUVNL, which took time to grant approval for the project’s metering scheme. Additionally, the project involved pooling power from two separate wind-generating stations into a single 150 MVA transformer, which required regulatory approval. The process of obtaining this approval significantly delayed ACME’s progress on the project.
GERC carefully calculated the delay attributable to this event as 139 days, spanning from August 22, 2023, to January 8, 2024. The Commission ruled that this period qualifies as a Force Majeure event, entitling ACME to an extension of the SCOD for the full 139 days. This effectively means that ACME is legally permitted to complete its project without facing penalties for the period affected by the delay.
An important aspect of the ruling is that GUVNL cannot claim any liquidated damages for the 139-day delay. GERC clarified that since the delay arose from regulatory holdups and approvals beyond the control of ACME, the project developer should not bear financial liability. This decision safeguards the company from penalties and clearly defines the responsibility for the delay.
The ruling provides significant relief to ACME Eco Clean Pvt. Limited and ensures that projects facing regulatory or approval-related delays can seek appropriate extensions under the Force Majeure clause. It also clarifies the scope of Force Majeure under PPAs and underscores the role of timely regulatory approvals in renewable energy projects.
By granting this extension, GERC has balanced the interests of both the project developer and the utility, ensuring that delays caused by factors outside the developer’s control do not result in unfair financial consequences. This decision reinforces the importance of regulatory cooperation in the execution of large-scale renewable energy projects and provides a legal reference for handling similar issues in the future.
Overall, the GERC ruling highlights the challenges in completing wind power projects on schedule and emphasizes the protections available to developers under contractual Force Majeure provisions, ensuring that unforeseen delays do not compromise project viability.
