APTEL Grants Full COD Extension To ACME Heergarh’s 300 MW Solar Project

ACME Heergarh Powertech Pvt. Ltd. has received a favorable ruling from the Appellate Tribunal for Electricity (APTEL) regarding the extension of its Scheduled Commercial Operation Date (SCOD). The tribunal, in its order dated January 31, 2025, granted an extension until the actual commissioning date, marking a significant victory for the company. This ruling overturn an earlier order by the Maharashtra Electricity Regulatory Commission (MERC), which had only allowed an extension up to April 19, 2022, and imposed liquidated damages for delays beyond this date.

The case revolved around ACME Heergarh’s 300 MW solar power project in Rajasthan, which faced unavoidable delays due to force majeure conditions, primarily the disruption of the global supply chain caused by the COVID-19 pandemic. The company had initially approached MERC, which partially recognized these challenges and granted an extension, but not for the full duration requested. MERC also ruled that liquidated damages would apply from April 20, 2022, to May 23, 2022, a decision that ACME Heergarh found unjust.

APTEL’s ruling acknowledges the severe impact of the force majeure conditions on project execution and supports ACME Heergarh’s claim that the entire delay was beyond its control. The tribunal emphasized that the company had notified the authorities of the supply chain disruption well in advance and had taken all necessary steps to mitigate the impact. As a result, APTEL has set aside MERC’s earlier order and recognized the validity of ACME Heergarh’s request for an extension until May 23, 2022. This decision not only nullifies the liquidated damages imposed by MERC but also mandates the refund of any such penalties already paid by ACME Heergarh.

This ruling is a testament to ACME Heergarh’s commitment to compliance and diligence in addressing unforeseen challenges. The company’s proactive approach to engaging with regulatory authorities and ensuring transparency throughout the process played a crucial role in securing this favorable outcome. The tribunal’s recognition of the force majeure conditions sets a positive precedent for renewable energy developers facing similar disruptions due to global crises.

The decision is expected to reinforce investor confidence in India’s renewable energy sector by highlighting the regulatory framework’s responsiveness to genuine operational challenges. By acknowledging the complexities associated with large-scale solar projects and the realities of global supply chain disruptions, APTEL has ensured that developers are not unfairly penalized for delays beyond their control.

For ACME Heergarh, this ruling provides much-needed clarity and financial relief, enabling the company to focus on optimizing its operations and contributing to India’s ambitious renewable energy targets. The decision also underscores the importance of a fair and balanced regulatory approach in fostering a robust and sustainable energy ecosystem.