CERC Reduces 300 MW Rajasthan Solar Project To 150 MW, Imposes Penalties For Commissioning Delays

In a significant regulatory ruling, the Central Electricity Regulatory Commission (CERC) has delivered its decision in a dispute involving SBSR Power Cleantech Eleven Private Limited, now known as Adani Solar Jaisalmer Two Private Limited, the Solar Energy Corporation of India (SECI), and two Delhi distribution companies — Tata Power Delhi Distribution Limited (TPDDL) and BSES Yamuna Power Limited (BYPL). The matter relates to a 300 MW solar power project located in Bikaner, Rajasthan, which experienced major delays.

The project was awarded under a Power Purchase Agreement (PPA) signed in August 2019. As per the agreement, the entire 300 MW capacity was to be commissioned by January 3, 2021. However, the developer faced disruptions due to the COVID-19 pandemic, land-related challenges, and delays in securing regulatory approvals for the Power Sale Agreements (PSAs) from the Delhi Electricity Regulatory Commission.

SECI granted multiple extensions to the project timeline. The scheduled commissioning date was first extended to November 20, 2021. Later, a final “long-stop” date of May 20, 2022, was set. By this final deadline, the developer was able to commission only 150 MW of the total capacity. The remaining 150 MW was not completed.

The dispute arose over whether further extensions should be granted and whether penalties should apply. The developer argued that the delay in PSA approval by the Delhi regulator was beyond its control and should be treated as a valid ground for additional time. On the other hand, TPDDL alleged that after SECI refused further extension and issued a No Objection Certificate, the developer diverted 62.5 MW of commissioned power to third parties, specifically the Electricity Department of Goa.

After examining the facts, CERC ruled that the contracted capacity under the PPA and PSAs would be reduced from 300 MW to 150 MW, which was the capacity commissioned before the long-stop date. The Commission held that the delays for the remaining 150 MW were not fully covered under the force majeure provisions for the entire period claimed by the developer.

As a result, the developer has been made liable for penalties. This includes pro-rata encashment of the Performance Bank Guarantee (PBG) for both the delayed 100 MW portion and the 150 MW that was never commissioned. The order highlights the importance of adhering strictly to long-stop dates in renewable energy contracts and clarifies that regulatory approval delays cannot automatically shield developers from contractual performance obligations and financial consequences.