GERC Grants Extension For Uncommissioned Power Project After Accepting Force Majeure Events In Gujarat

The Gujarat Electricity Regulatory Commission (GERC) recently issued a ruling on Petition No. 2476 of 2025, which was filed by M/s KP Energy Limited. The company had requested an extension for the commissioning of its uncommissioned power generation capacity, citing multiple Force Majeure events as reasons for the delay. The petition was filed under various provisions of the Electricity Act, 2003. Along with the main petition, the company also submitted a supplementary application seeking urgent listing and interim orders on the matter.

During the review, the Commission examined the reasons provided by M/s KP Energy Limited for the project delay. A significant point raised by the petitioner was related to regulatory ambiguity. The company argued that confusion regarding the permissible banking capacity under green energy open access regulations had hindered the establishment of the required transmission infrastructure. However, GERC was not convinced by this argument. The Commission noted that this claim lacked proper documentary evidence and, therefore, could not be considered a valid reason for granting an extension.

Despite rejecting the regulatory confusion claim, the Commission acknowledged that some of the other circumstances mentioned by the petitioner did constitute genuine Force Majeure events. In its order, GERC confirmed two specific events as qualifying Force Majeure factors that affected the project timeline.

The first accepted event involved a 108-day delay caused by redesigning and restructuring work. This work was necessitated by the new Gujarat Renewable Energy Policy, 2023, and the delay period officially spanned from June 19, 2023, to October 4, 2023. The policy changes required adjustments in the project’s design and execution, which contributed to the delay.

The second recognized event was more substantial, totaling 678 days. This extensive delay was attributed to legal uncertainties in the regulatory process. Specifically, the delay arose from issues regarding developer permissions and transfer permissions needed for project connectivity. The period of uncertainty was calculated from January 7, 2023, to November 14, 2024. This factor significantly impacted the timeline for commissioning the remaining capacity of the project.

After assessing the two confirmed Force Majeure events, the Commission concluded that M/s KP Energy Limited is eligible for an extension. The relief was granted strictly based on the delays substantiated and accepted by GERC, ensuring that the extension was grounded in verifiable circumstances.

This ruling allows M/s KP Energy Limited to proceed with the remaining uncommissioned portion of the power project. The Commission’s decision highlights the importance of providing proper documentation and evidence when claiming delays due to regulatory or policy-related issues. While some claims were not accepted, the acknowledgment of genuine Force Majeure events demonstrates the regulatory body’s careful consideration of valid delays.

The order is significant as it balances the need for timely project execution with recognition of uncontrollable events that genuinely affect project schedules. By granting the extension on verified grounds, GERC has provided relief to the petitioner while maintaining regulatory accountability. The decision ensures that the project can move forward, addressing both procedural and operational challenges faced by developers in the renewable energy sector.

Overall, the GERC ruling underscores the importance of substantiated claims when seeking extensions and reflects the Commission’s approach to managing project delays within Gujarat’s regulatory framework. The extension granted to M/s KP Energy Limited is expected to facilitate the completion of the project, supporting the state’s renewable energy goals while upholding procedural integrity.