GERC Upholds Open Access Rights, Quashes DGVCL’s Denial In Key Renewable Energy Case

The Gujarat Electricity Regulatory Commission in Gandhinagar has issued a major ruling in Petition No. 1859 of 2020, bringing clarity to an important dispute concerning renewable energy transmission and open access rights. The case involved J.B. Renewable LLP and J.B. Ecotex LLP, who challenged the Dakshin Gujarat Vij Company Limited for denying them Medium-Term Open Access. The petitioners argued that the denial was not only unjustified but also in violation of the Commission’s own open access regulations and the Electricity Act of 2003. With this order, the Commission has provided a clearer interpretation of how open access rules should apply to renewable energy generators seeking to sell electricity to third parties.

A key part of the ruling focused on the interpretation of the 50% capacity restriction mentioned in the Gujarat Wind Power Policy of 2016. DGVCL had applied this restriction in the case, limiting the amount of power that could be used or transmitted. The Commission clarified that this limit is meant only for projects where the energy is used for captive consumption. Captive use refers to situations where the power generated is consumed directly by the generator or its associated companies. The Commission made it clear that this restriction does not apply to power generated for third-party sale. This clarification is important because it ensures that rules designed to regulate captive use do not mistakenly obstruct renewable energy generators from selling their power commercially.

The second major finding of the Commission dealt directly with DGVCL’s decision to deny access. The utility had issued a letter on August 30, 2019, officially rejecting the application for Medium-Term Open Access. After examining the case, the Commission held that the denial was arbitrary and beyond the legal authority of the utility. It stated that the rejection was “ultra vires” the GERC Open Access Regulations of 2011, meaning the utility acted outside the powers given to it by law. As a result, the Commission ordered that the denial letter be quashed and declared invalid.

In its order, the Commission also highlighted a principle upheld by the Supreme Court, which states that open access rights are intended to facilitate consumer choice and should not be denied through procedural or technical hurdles. This observation strengthens the idea that distribution companies must support, rather than restrict, access to the transmission network for eligible renewable energy producers.

To offer relief to the petitioners, the Commission directed DGVCL to calculate and provide a setoff for the 25,69,247 units of power that J.B. Renewable LLP had injected into the grid during the period of the dispute. This energy credit is to be applied to the bills of J.B. Ecotex LLP, pending verification of the injected units by the State Load Despatch Centre. This direction ensures that the petitioners are compensated for the power they generated and delivered during the time access was wrongly denied.

Overall, the ruling sends a strong message that renewable energy producers have a clear right to use open access for selling power to third parties and that utilities cannot block such transactions through improper interpretations of policy or technical procedures. This order is expected to provide confidence and support for renewable energy developers operating in Gujarat.