CERC Orders Three-Member Arbitration Panel to Resolve Ongoing PPA Dispute

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The Central Electricity Regulatory Commission issued an important order on November 14, 2025 in a case involving ReNew Wind Energy (AP2) Private Limited and the Solar Energy Corporation of India Limited, along with GRIDCO Limited and the Haryana Power Purchase Centre. The case was registered as Petition No. 56/MP/2022 and was filed under Sections 63 and 79 of the Electricity Act, 2003. It also involved the Competitive Bidding Guidelines and certain articles of the Power Purchase Agreement that the parties had signed on May 23, 2018. The matter was heard and decided by a Commission bench consisting of Chairperson Jishnu Barua and Members Ramesh Babu V. and Harish Dudani.

The petition arose due to a dispute between the contracting parties, and the Commission had to determine the correct mechanism to resolve this dispute. After examining the details, the nature of the disagreement, and the value involved, the Commission concluded that the matter should be taken up through arbitration. This decision was made in line with Regulation 49(b) of the CERC (Conduct of Business) Regulations, 2023, which provides guidelines for forming an arbitration panel in such cases.

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Based on this regulation, the Commission directed both ReNew Wind Energy (AP2) and SECI to propose the names of arbitrators. This process has to be completed within two weeks of the date of the order. Once both parties submit their nominations, the two arbitrators selected by the parties will together choose a third person who will act as the presiding arbitrator. This standard three-member arbitration panel will then be responsible for handling and resolving the dispute.

The Commission also gave clarity on how the selection process should be handled to avoid any issues related to bias. It clearly stated that it would not appoint any person as an arbitrator if either party raises a reasonable and valid objection to that person. This ensures fairness and transparency in the arbitration process. The Commission also added that if any of the nominated arbitrators is unable to take up the assignment or cannot continue at any stage, then a replacement can be nominated. Such a nomination will be made by the Commission only after receiving an application from either ReNew Wind Energy (AP2) or SECI.

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In addition to these directions, the Commission mentioned that the petition will be scheduled again in the future. This next listing will only focus on finalising the panel of arbitrators after receiving the names from both sides. Once the panel is confirmed, the arbitration process can officially begin. The Commission’s approach aims to ensure that the dispute is settled in a systematic and legally sound manner, giving both sides an equal and fair opportunity to present their case.

With this order, the CERC has set the procedure for how the dispute will move forward, emphasising a structured arbitration route instead of prolonged litigation. The decision signals that the Commission is committed to resolving contractual disputes within the framework of established regulations and encouraging the parties to work within a formal yet flexible mechanism designed to handle such disagreements.

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