APTEL Upholds CERC Order Holding Solar Park Developer Liable for Transmission Charges
The Appellate Tribunal for Electricity upheld CERC’s ruling that solar park developer Saurya Urja must pay transmission charges for Bhadla Solar Park despite generator delays, strengthening accountability in India’s solar sector.
June 26, 2025. By EI News Network
The Tribunal dismissed SUCRL’s appeals and upheld the Central Electricity Regulatory Commission’s (CERC) orders, reinforcing that solar park developers must honor their contractual obligations related to grid access, regardless of generator readiness.
The case centered on SUCRL's liability for interstate transmission charges related to the 1000 MW Bhadla Phase-III Solar Park in Rajasthan during periods when power generators within the park delayed commissioning their projects.
SUCRL, designated as the Solar Power Park Developer (SPPD) under Ministry of New and Renewable Energy (MNRE) schemes, contested two CERC orders. The first order held SUCRL liable for full transmission charges for 500 MW of Long-Term Access (LTA) from its operationalization date of October 25, 2019, despite only 200 MW of generation capacity being ready at that time.
The second order required SUCRL to pay 'mismatch period' charges covering October 27, 2019, to February 29, 2020, for the remaining 300 MW that was not yet commissioned. The developer argued it acted merely as a facilitator or agent for the solar power generators and lacked legal status as a licensee, generator, or consumer under the Electricity Act, 2003. SUCRL further contended its initial November 2015 undertaking to bear liabilities was a procedural formality without legal force.
The Tribunal emphatically rejected SUCRL's arguments. It ruled that SUCRL’s November 23, 2015, undertaking to 'bear all liabilities related to Connectivity/LTA' on behalf of the generators, coupled with its subsequent execution of binding Long-Term Access and Transmission Service Agreements with Power Grid Corporation of India Ltd. (PGCIL) in May 2016, constituted voluntary and informed commitments.
These agreements explicitly incorporated the undertaking and obligated SUCRL to pay transmission charges under the Point of Connection (PoC) regime. APTEL underscored that CERC’s 2015 regulatory amendments, particularly the Fifth Amendment to the Connectivity Regulations, were specifically designed to hold SPPDs liable for transmission charges during generator delays, placing them on par with thermal and hydro generators. By availing itself of statutory benefits like streamlined approvals, single-window connectivity, and priority scheduling under the MNRE’s solar park scheme, SUCRL had elected to participate in this regulatory framework and could not later disclaim its associated burdens.
Furthermore, the Tribunal clarified that SUCRL’s potential agency relationship or private indemnity agreements with the individual solar power generators did not negate its direct, primary liability to the transmission utilities (PGCIL/CTUIL) under public-law contracts and regulations. Liability for transmission charges, APTEL explained, arises not solely from the physical flow of power but fundamentally from the reservation of grid capacity triggered by the operationalization of the Long-Term Access.
The transmission assets incur capital and operational costs irrespective of generator readiness, justifying cost recovery from the entity that secured the access. The Tribunal also found no grounds for CERC to relax these clear regulatory obligations, which SUCRL had knowingly and contractually assumed.
Consequently, APTEL dismissed the firm's appeals, affirming the CERC orders and confirming SUCRL’s liability to pay the disputed interstate transmission charges for the mismatch periods. This ruling establishes a critical precedent, solidifying the financial responsibility of solar park developers for ensuring timely project execution by generators within their parks. It reinforces the financial structure of India’s 'plug-and-play'solar park model, providing certainty for transmission utilities regarding cost recovery and underscoring the inherent risks assumed by developers under the nation’s renewable energy regulatory framework.
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