GERC Grants Six-Month Extension For 5.5 MW Wind-Solar Hybrid Project In Gujarat

The Gujarat Electricity Regulatory Commission (GERC) has provided major relief to KPI Green Energy Limited by granting a six-month extension for the commissioning of its 5.5 MW Wind-Solar Hybrid Power Project located at Vagra in Gujarat’s Bharuch district. The order was issued on June 20, 2026, by a bench comprising Chairman Pankaj Joshi and Member Jatin N. Thakkar.

As part of its decision, the Commission directed Gujarat Energy Transmission Corporation Limited (GETCO) not to cancel the project’s Stage-II grid connectivity or invoke the company’s bank guarantee of ₹55 lakh during the extended period. The ruling comes as a significant support for the renewable energy developer, which had approached the Commission seeking additional time to complete the project.

The project was initially developed by KPI Green Energy for third-party power sales. The company had secured Stage-II connectivity at GETCO’s 220 kV Vagra substation in July 2024 and submitted the required bank guarantee. Later, the project capacity was allocated to Gujarat Urja Vikas Nigam Limited (GUVNL) through a competitive bidding process.

The dispute began when GETCO issued a communication in June 2025 directing KPI Green Energy to commission the project by July 29, 2025, which marked one year from the date of connectivity allocation. GETCO warned that failure to meet the deadline would result in cancellation of connectivity and forfeiture of the bank guarantee.

KPI Green Energy argued that the commissioning timeline should be calculated from January 22, 2025, when the evacuation infrastructure was actually charged and made available. The company also informed the Commission that delays during the legal proceedings caused it to miss a key contractual window to integrate the project into a larger 370 MW power purchase agreement with GUVNL. To avoid financial losses and prevent the project from becoming stranded, the company subsequently linked the connectivity to a separate 150 MW wind power agreement signed with GUVNL in November 2025.

GETCO opposed the request, stating that the original connectivity guidelines did not permit a change in project purpose and that the developer had failed to achieve the required milestones within the prescribed timelines.

After reviewing the matter, GERC referred to amendments introduced in January 2026 that allow renewable energy developers facing unforeseen circumstances to seek extensions. The Commission concluded that KPI’s case qualified under these provisions and granted the extension. It also directed the company to keep its bank guarantees valid and submit quarterly progress reports to both GETCO and GERC until project completion.