APTEL Orders Fresh Tariff Review For 10 MW Punjab Rooftop Solar Project

The Appellate Tribunal for Electricity (APTEL) has given partial relief to Radiance Punjab Renewable Private Limited in a dispute related to its 10 MW solar rooftop power project in Punjab. The case arose after the Punjab State Electricity Regulatory Commission (PSERC) reduced the project’s contracted tariff from ₹7.59 per kWh to ₹5.09 per kWh, after recognizing only a 29-day delay in achieving the Commercial Operation Date (COD). The company challenged this decision and sought recognition of additional delays as Force Majeure events.

The project dates back to March 2015, when the developer’s predecessor won a competitive bid conducted by the Punjab Energy Development Agency (PEDA). After the bid, an Implementation Agreement was signed with PEDA and a Power Purchase Agreement (PPA) was executed with Punjab State Power Corporation Limited (PSPCL). The project was originally required to be commissioned within 10 months from the date of the PPA.

However, the developer argued that several factors beyond its control delayed the project. In its appeal before APTEL, the company highlighted three major periods of delay: a 41-day delay in obtaining regulatory approval for the PPA, delays related to site finalization and grid connectivity, and a 10-day disruption caused by the Jat agitation.

On the issue of the 41-day delay, the state utilities argued that the developer had not issued a formal Force Majeure notice within the time required under the contract. APTEL rejected this argument and observed that a PPA becomes enforceable only after approval by the State Commission under the Electricity Act. Since obtaining this approval was the responsibility of the state utility, the delay was already known to the authorities. The Tribunal held that insisting on a formal notice in such circumstances was merely a technicality and granted the developer a 41-day extension.

For the delays related to site selection and grid connectivity, the developer claimed a 127-day delay. PSERC had earlier examined the timeline and attributed only part of the delay to the state agencies. APTEL found no error in PSERC’s calculations and upheld its findings on this issue.

The Tribunal also refused relief for the 10-day delay caused by the Jat agitation. It said that the agitation was an external event and the developer had failed to issue the mandatory contractual notice for claiming Force Majeure protection.

As a result, APTEL partly allowed the appeal and directed PSERC to recalculate the delay for each of the nine rooftop solar sites and determine the applicable tariff based on the revised timeline.