HERC Weighs Relaxation In Renewable Energy Bidding Rules Amid Developer Concerns In Haryana

Sunphotonics JLTM Private Limited has approached the Haryana Electricity Regulatory Commission (HERC) with a petition under the HERC Regulations 2019 and the Electricity Act 2003. The company sought approval for deviations in the bidding process document and clarification on specific provisions. The petition was filed on 19 August 2025. The matter is connected to the Haryana Power Purchase Centre (HPPC), which had earlier issued a Request for Proposal (RfP) for procuring renewable power through a competitive bidding process. Sunphotonics JLTM raised certain concerns about the standard bidding guidelines and asked for permission to align some terms with the requirements of the project and contractual obligations.

The company’s petition pointed out that the changes were needed to make the project financially viable and technically feasible. They argued that certain clauses in the RfP created uncertainty for developers, particularly regarding payment security mechanisms, force majeure conditions, and termination clauses. Sunphotonics highlighted that without modifications, developers could face financial risks, which might affect the bankability of projects. They requested the Commission to consider these changes so that participation in the bidding process becomes more attractive and competitive.

HPPC, in its submission, maintained that the guidelines were framed based on the Ministry of Power’s standard bidding documents and followed due procedure. It stated that the deviations sought should be carefully examined as they might set a precedent for other developers to demand changes in future bids. HPPC emphasized that while supporting renewable energy procurement is important, the sanctity of competitive bidding must be preserved to ensure transparency and fairness.

During the hearing, the Commission acknowledged the concerns raised by both parties. It noted that the objective of the Electricity Act and HERC regulations is to promote renewable energy while balancing consumer interests and ensuring a reliable supply. The Commission observed that payment security and risk-sharing mechanisms are vital for attracting investment, but they must not compromise the competitive structure of bidding.

After considering the submissions, HERC reserved its order on the matter. The Commission stated that it would carefully evaluate whether the proposed deviations are minor relaxations or fundamental changes that alter the intent of competitive bidding. The outcome of this petition will be important for renewable energy developers and utilities in Haryana, as it may influence the framework of future bidding rounds.

This case highlights the ongoing challenges in renewable energy procurement in India. While the government promotes competitive bidding to bring efficiency and lower tariffs, developers continue to seek more balanced risk allocation to make projects sustainable. The decision of HERC in this matter will serve as a benchmark for similar cases in other states. It reflects the larger debate in the sector on how to reconcile investor confidence with consumer protection in the transition to clean energy.