| Work Detail |
In a recent development, M/s Clean Solar Power (Gulbarga) Pvt., Ltd. has petitioned the Karnataka Electricity Regulatory Commission (KERC) seeking compensation for generation losses incurred due to transmission delays. The petitioner, a Special Purpose Vehicle (SPV) of M/s Hero Solar Energy Private Limited, alleges negligence and failure on the part of the Karnataka Power Transmission Corporation Limited (KPTCL) to construct the necessary transmission infrastructure for its Solar Project located in Beejihalli village, Tumkuru district, Karnataka.
The Solar Project, a 30 MW capacity, was commissioned on 18.04.2018. However, the petitioner claims that due to delays in constructing the upstream transmission infrastructure by KPTCL, it has been unable to evacuate the entire contracted capacity. The KPTCL’s alleged negligence has resulted in the evacuation of only “4 MW to 12 MW” power out of the total contracted capacity.
The petitioner contends that KPTCL’s failure to fulfill its obligation has led to financial losses, affecting the Solar PV Modules’ life and causing irreparable harm. The delays in transmission infrastructure have reportedly impacted the petitioner’s ability to generate and supply the contracted power.
The petitioner filed a petition with the KERC under various sections of the Electricity Act, 2003, seeking compensation and relief. It argues that KPTCL’s commitments in the Technical Feasibility Report, especially regarding connectivity within 13 months from the Power Purchase Agreement (PPA) signing, formed the basis for the petitioner’s investment in the Solar Project.
KPTCL’s Response:
In response, KPTCL contends that there is no contractual obligation to construct the upstream transmission infrastructure and challenges the petitioner’s claim for compensation. KPTCL argues that the petitioner’s claim is founded on ‘promissory estoppel’ and ‘legitimate expectation’ rather than a direct contractual relationship between the two parties.
KPTCL asserts that ‘force majeure’ events, such as right-of-way issues, obstructions, and the COVID-19 pandemic, hindered the timely completion of the upstream works. Additionally, KPTCL points out that the petitioner accepted conditions in the tentative evacuation approval, acting as an estoppel for claiming generation losses.
KERC Findings:
The KERC, after considering submissions from both parties, has found KPTCL negligent in completing the upstream work within a reasonable time. The commission noted that while ‘force majeure’ events affected the construction, KPTCL cannot claim an indefinite period for completion.
Regarding the petitioner’s claim for compensation, the KERC ruled in partial affirmation, stating that the petitioner is entitled to compensation at the PPA tariff rate for the generation loss from 05.11.2021 until the transmission congestion/constraint subsists. However, the exact quantum of compensation is subject to further verification.
The commission also emphasized that KPTCL needs to complete the evacuation infrastructure promptly and expressed concern over the delay despite previous directives. The Energy Department and KPTCL are instructed to conduct an inquiry, take responsibility, and take appropriate action against officials responsible for the delay.
In conclusion, the KERC’s ruling partially favors the petitioner, acknowledging the need for compensation due to transmission delays. The decision highlights the importance of timely infrastructure development to avoid financial losses for renewable energy projects. The focus is on ensuring accountability and expeditious completion of the necessary transmission infrastructure to prevent further losses for the petitioner and promote the efficiency of the state’s intra-state transmission lines.
This case underscores the challenges in the renewable energy sector and the significance of transparent and accountable regulatory mechanisms to address disputes and facilitate the growth of clean energy projects. |
