The Gujarat Electricity Regulatory Commission (GERC) has granted a 361-day extension to a wind energy developer to complete the power evacuation infrastructure for its 70 MW wind-solar hybrid power project. It also exempted the company from financial liabilities, including the encashment of the bank guarantee.

The petition was filed after the wind energy developer, Shivman Wind Energy, faced delays in approvals, right-of-way agitation, and supply chain bottlenecks that affected the scheduled commercial operation date.

Background

Shivman Wind Energy applied for Stage-I and Stage-II connectivity on July 26, 2023, to evacuate 70 MW of hybrid power from its project in the Dwarka district of Gujarat to the 220/66 kV Bhatiya substation of the Gujarat Energy Transmission Corporation (GETCO).

The connectivity was granted on August 31, 2023, which required the execution of a connection agreement, the opening of a letter of credit, approvals under Sections 68 and 164 of the Electricity Act 2003, and the submission of a bank guarantee for the bay work.

The company executed its connectivity agreement with GETCO on October 30, 2023, and deposited ₹1.17 million (~$13,040) towards supervision charges for the erection of the 66 kV feeder bay.

The project initially had to be commissioned by March 2, 2025. However, the petitioner said that the process was delayed due to multiple factors beyond its control. The Gujarat Energy Development Agency (GEDA) took 76 days between October 4 and December 19, 2024, to issue its final developer permission.

Field-level approvals for wind turbine generator locations were delayed by 80 days between April 22 and July 11, 2024, and by 36 days between mid-August and September 19, 2024. A right-of-way agitation from December 27, 2024, onwards blocked the erection of extra high voltage lines for 139 days.

The company also experienced compatibility issues with control and relay panels (CRPs) for the supervisory control and data acquisition system from November 14, 2024, to February 13, 2025.

Additionally, GETCO’s kick-off meeting and approval for the extension of the transmission system were delayed by 77 days, from August 7 to October 23, 2024. On February 25, 2025, one of the petitioner’s vendors confirmed delays in delivering the 80 MVA transformer due to supply chain shortages, pushing the delivery to May 2025.

Meanwhile, Shivman submitted a fresh bank guarantee of ₹210 million (~$2.36 million) on February 28, 2025, valid until August 19, 2025, with a claim period up to August 19, 2026, and sought protection from invocation.

Commission’s Analysis

The Commission examined the chronology, correspondence, and legal framework, which allows extension of commissioning timelines for unforeseen reasons. It held that the delays caused by GEDA’s developer permission, GETCO’s kick-off meeting and CRP approval, the right-of-way agitation, and supply constraints were events beyond the petitioner’s reasonable control.

While GETCO argued that bank guarantees were partly due to the petitioner’s inaction, the Commission concluded that the evidence demonstrated bona fide efforts by the developer and that strict enforcement of penalties would be inconsistent with the statutory duty to promote renewable energy.

GERC consolidated the periods of delay, accounting for overlaps, and determined that the project was entitled to a 361-day extension. The extension covered the period from April 22 to July 11, 2024 (80 days) and from August 7, 2024, to May 14, 2025 (281 days).

The Commission declared the petitioner exempt from financial liabilities arising from the delay, including encashment or forfeiture of the ₹210 million (~$2.36 million) bank guarantee furnished to GETCO.

Recently, GERC increased the additional surcharge for open access consumers by ₹0.18/kWh (~$0.002)/kWh.

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