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Avikiran Solar India Private Limited, a renewable energy developer, approached the Central Electricity Regulatory Commission seeking relief from transmission charges related to its wind power project in Gujarat. The dispute was linked to a 285 MW wind project located in the Kutch district, which was awarded through a competitive bidding process conducted by the Solar Energy Corporation of India. The developer argued that due to delays beyond its control, it should not be required to pay transmission charges for a period when the project was unable to use the grid.
The wind project faced several challenges that disrupted its original timeline. One of the key issues was a change in land allocation policies by the Gujarat government. These changes delayed the acquisition of land required for installing wind turbines. In addition to land-related hurdles, the project also experienced delays in securing necessary clearances from the Ministry of Defence. The situation worsened with the outbreak of the COVID-19 pandemic, which led to nationwide lockdowns and further slowed down project activities.
Taking these difficulties into account, SECI treated the delays as force majeure events. As a result, the commissioning deadline for the project was extended multiple times. The original deadline of February 2020 was eventually shifted to March 2022. Despite these extensions for project completion, the issue of transmission charges remained unresolved.
The main point of disagreement revolved around Long-Term Access to the interstate transmission system. Avikiran Solar requested that the start date of its LTA, along with the associated transmission charges, be aligned with the revised commissioning schedule. The developer referred to a Ministry of Power order, which discussed relief measures for renewable energy projects affected by uncontrollable delays. According to the developer, charging for transmission capacity that could not be used due to such delays was unfair.
On the other hand, the Central Transmission Utility of India Limited opposed this request. CTUIL stated that the LTA agreement is a commercial arrangement that operates independently of project-level delays. It argued that once the transmission system was ready to evacuate power, the developer became liable to pay the charges. In this case, the transmission infrastructure was ready by May 2021, making the charges applicable from that point onward.
After examining the submissions, the Commission ruled in favor of the transmission utility. CERC clarified that waivers on transmission charges for renewable energy projects apply only to the electricity actually generated and sold after commissioning. The regulations do not allow exemptions for unused or waiting transmission capacity, even if project delays are caused by policy changes or events like the pandemic. As a result, Avikiran Solar remains responsible for paying the transmission charges for the period between the readiness of the grid and the start of commercial operations.
