CSERC Allows Banking Of 2.84 MW Solar Project’s Deemed Energy, Grants One-Time Relief In Chhattisgarh

The Chhattisgarh State Electricity Regulatory Commission (CSERC) has ruled in favor of M/s Agarwal Sponge Pvt. Ltd. in a dispute related to the banking of solar energy generated by its captive power project. The order was issued in Case No. 40 of 2026 and provides relief to the company by allowing the electricity generated during a period of administrative delay to be treated as banked energy.

M/s Agarwal Sponge Pvt. Ltd. operates a captive power plant with a connected load of 900 kVA. The company also developed a 2.84 MW solar power project in the Khairagarh-Chhuikhadan-Gandai district of Chhattisgarh. The solar plant was synchronized with the state grid on December 5, 2024, allowing it to begin generating electricity.

However, the company faced delays in completing the required formalities before it could officially use the banking facility. The mandatory Availability Based Tariff (ABT) meter was installed only on March 26, 2025, after a delay of around seven months. The delay occurred because the Commission took time to decide a related petition seeking exemption from a dedicated feeder. In addition, Long-Term Open Access (LTOA), which was necessary for banking, was approved only on May 2, 2025.

During this period, the solar project generated about 20,02,200 units of electricity, which were injected into the state grid. The company approached CSERC requesting that these units be treated as “deemed banked energy” so they could be adjusted against future electricity bills. It also sought monetary compensation with interest if any surplus energy remained unutilized. The company argued that the delays were caused by procedural and technical issues involving the distribution and transmission utilities, which were beyond its control.

The Chhattisgarh State Power Distribution Company Limited (CSPDCL) opposed the petition. It argued that under the 2019 Distributed Renewable Energy (DRE) Regulations and an earlier Commission order, installation of an ABT meter was mandatory before banking could be allowed. It also stated that unused banked energy expires at the end of each quarterly banking cycle and cannot be carried forward.

After examining the matter, CSERC observed that both parties had relied on the older 2019 regulations instead of the amended 2023 DRE Regulations. The Commission clarified that under the amended rules, the date of synchronization is considered the Commercial Operation Date (COD). The regulations also provide that electricity injected into the grid between the synchronization date and the approval of open access should be treated as “deemed energy banked.”

The Commission noted that the petitioner had completed all required steps on time and that the delay was due to administrative and procedural reasons. Taking a practical approach, CSERC directed that the electricity generated from the synchronization date until the grant of open access be treated as banked energy for the October–December 2024 and January–March 2025 quarters. It also allowed the unused banked units from the earlier quarter to be carried forward as a one-time relief up to the April–June 2025 quarter. However, the Commission rejected the company’s request for financial compensation and interest on the surplus energy.