M/s Enren Energy Pvt. Limited filed a petition before the Gujarat Electricity Regulatory Commission (GERC) seeking an extension of the Scheduled Commercial Operation Date (SCOD) for its 400 MW solar power project due to force majeure events. The petition was filed under Section 86(1)(e), (f), and (k) of the Electricity Act, 2003, concerning a Power Purchase Agreement (PPA) dated December 15, 2022, with Gujarat Urja Vikas Nigam Limited (GUVNL). Enren Energy sought appropriate directions regarding certain contractual obligations and relief from penalties.
During the hearing on January 21, 2025, Enren Energy’s legal representative, Advocate Molshree Bhatnagar, informed the Commission that a settlement proposal had been submitted to GUVNL and was awaiting approval from the competent authority. She mentioned that despite the ongoing settlement discussions, GUVNL had already encashed Enren Energy’s bank guarantee, and the company was paying liquidated damages as per the PPA. Consequently, the petitioner requested an adjournment of the case, agreeing to file a joint statement (Pursis) regarding the settlement.
GUVNL’s legal representative, Advocate Utkarsh Singh, acknowledged receiving the settlement proposal and confirmed that it was under review. He stated that while GUVNL had filed its reply to the interim application, it maintained that Enren Energy was not eligible for any relief. However, given the ongoing discussions, GUVNL agreed to the adjournment and requested a future hearing date.
The Commission inquired about the project’s status, and Enren Energy disclosed that only 100 MW of the 400 MW project had been commissioned, with liquidated damages continuing to be paid. Given the project’s delays, the PPA stipulated that the entire project should have been completed by December 15, 2024, and failure to achieve this could lead to PPA termination.
The Commission noted that Enren Energy had previously approached the Gujarat High Court through a Special Civil Application (SCA No. 7705 of 2024), where the court directed an expedited hearing. Several hearings had already taken place on May 21, June 13, December 13, January 7, and January 21, covering key issues such as bank guarantee encashment, force majeure claims, SCOD extension, and liquidated damages.
The Commission also observed that while Enren Energy initially sought urgent resolution, it was now prolonging proceedings by requesting another adjournment. Additionally, GUVNL had not submitted its reply within the originally granted timeframe, further delaying the process.
Despite these delays, both parties agreed to submit their respective replies and a joint statement regarding the settlement. The Commission directed Enren Energy to provide an affidavit detailing the settlement outcome before the next hearing. Considering the mutual request for adjournment, the next hearing was scheduled for February 7, 2025.
The order was signed by Commission Members officially noting the adjournment and requiring further submissions from both parties.
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