APTEL Rules In Favor Of Solar Developer Ordering NTPC To Refund Liquidated Damages For 140 MW Projects

Representational image. Credit: Canva

The Appellate Tribunal for Electricity (APTEL) has delivered a judgment in favor of Solaire Surya Urja Private Limited, a solar power developer in Rajasthan, against NTPC Limited and other entities. The case arose from a dispute over the delay in the commissioning of two solar power projects with a total capacity of 140 MW. The company had sought an extension of the Scheduled Commercial Operation Date (SCOD) due to the non-availability of the required evacuation transmission infrastructure, which was under the responsibility of Rajasthan Rajya Vidyut Prasaran Nigam Limited (RRVPNL).

The appellant had entered into Power Purchase Agreements (PPAs) with NTPC in May 2016, under which the projects were scheduled to be commissioned by June 1, 2017. However, the company faced delays due to the absence of an adequate evacuation system, which prevented it from injecting power into the grid. Despite its repeated communications regarding the issue, NTPC imposed liquidated damages on the company for the delay in supplying power.

The Central Electricity Regulatory Commission (CERC), in its August 2021 order, had ruled against the appellant, holding it liable for the delay and allowing NTPC to recover liquidated damages. Dissatisfied with the decision, the company filed an appeal before APTEL.

APTEL reviewed the case and acknowledged that the delay was caused by factors beyond the control of the solar power developer. The tribunal observed that RRVPNL had not provided the necessary evacuation infrastructure in time and had even restricted the company from injecting power into the grid without prior approval. The tribunal noted that the appellant had commissioned parts of the projects much earlier but was unable to commence power supply due to the transmission constraints.

APTEL further examined the contractual clauses under the PPAs and concluded that the appellant was entitled to an extension of the SCOD under the force majeure provisions. It ruled that the appellant could not be penalized for a delay caused by external factors, such as the non-availability of the transmission system. The tribunal set aside CERC’s order and directed NTPC to refund the liquidated damages amount, if any, collected from the appellant.

The judgment highlights the importance of proper infrastructure planning for renewable energy projects and emphasizes that developers should not be penalized for delays caused by deficiencies in government agencies’ responsibilities. The ruling sets a precedent for similar cases where transmission constraints hinder the timely commissioning of renewable energy projects. The decision also reinforces the need for coordination between power developers and transmission utilities to ensure smooth project execution.

 

  • Related Posts

    Global Energy Transition Requires 38.2 TW Renewable Capacity by 2050, Stronger Grids and Energy Efficiency – Report

    The global energy transition is entering a decisive phase, driven by record renewable energy deployment, declining technology costs and increasing electrification across transport, buildings and industry. However, progress remains uneven…

    Solidus Techno Power Integrates 27.31 MWh BESS With 50 MW Solar Project For SBF Ispat

    Solidus Techno Power Private Limited has announced the successful delivery of a 27.31 MWh Battery Energy Storage System (BESS) integrated with a 50 MW solar power project for SBF Ispat…

    Have You Seen?

    Global Energy Transition Requires 38.2 TW Renewable Capacity by 2050, Stronger Grids and Energy Efficiency – Report

    • October 24, 2026
    Global Energy Transition Requires 38.2 TW Renewable Capacity by 2050, Stronger Grids and Energy Efficiency – Report

    Solidus Techno Power Integrates 27.31 MWh BESS With 50 MW Solar Project For SBF Ispat

    • October 24, 2026
    Solidus Techno Power Integrates 27.31 MWh BESS With 50 MW Solar Project For SBF Ispat

    ACCIONA Energía Starts Operations Of 72 MW Wind Farms In Croatia

    • October 24, 2026
    ACCIONA Energía Starts Operations Of 72 MW Wind Farms In Croatia

    Solidus Techno Power Delivers 27.31 MWh BESS For SBF Ispat’s 50 MW Solar Project

    • October 24, 2026
    Solidus Techno Power Delivers 27.31 MWh BESS For SBF Ispat’s 50 MW Solar Project

    Kerala Engineering College Invites Tender For Green Hydrogen Research Equipment

    • October 24, 2026
    Kerala Engineering College Invites Tender For Green Hydrogen Research Equipment

    RE:MAKE India 2026 to Connect Renewable Energy Manufacturing, Technology and Supply Chains at Yashobhoomi

    • October 24, 2026
    RE:MAKE India 2026 to Connect Renewable Energy Manufacturing, Technology and Supply Chains at Yashobhoomi

    NVVN Invites Bids For Rooftop Solar Project At NIB Noida

    • October 24, 2026
    NVVN Invites Bids For Rooftop Solar Project At NIB Noida

    Fourth Partner Energy Executes 75 MWp Open Access Solar Park In Maharashtra

    • October 24, 2026
    Fourth Partner Energy Executes 75 MWp Open Access Solar Park In Maharashtra

    Three Weeks to Go: Thailand Clean Energy Week 2026 Brings Industry Leaders Together in Bangkok

    • October 24, 2026
    Three Weeks to Go: Thailand Clean Energy Week 2026 Brings Industry Leaders Together in Bangkok

    Buskowitz Energy Wins Company of the Year – Solar EPC (Commercial/Industrial)

    • October 24, 2026
    Buskowitz Energy Wins Company of the Year – Solar EPC (Commercial/Industrial)