BS reported that in a major set back for solar power developers in Gujarat, the state power regulator, Gujarat Electricity Regulatory Commission on Friday dismissed all petitions filed for extension of the control period. The regulator, in its order announced on Friday, rejected the petitions stating that the same were not made on strong grounds.
GERC in its 53 page order stated that "None of the petitioners indicated any ground whatsoever which is of universal application either in the state of Gujarat or a major part thereof by which all the projects are affected by such factors. In view of the above analysis, we decide that the petitioners have not succeeded in making out a case for invoking the inherent power of the Commission to extend the control period.”
About 36 different solar power developers including Hiraco Renewable Energy, Kemrock Industries and Exports Ltd, TATA Power Renewable Energy, Moser Bear Energy and Development Ltd, Lanco Infratech Ltd and trade body Solar Energy Association of Gujarat among others had filed petitions for extension of the 'Control Period' as defined in the Commission's order no 2 of 2010 dated January 29th 2010.
The petitioners had put forward several reasons for seeking extension of the control period. Some raised land related issues, flooding of land due to unusual and excessive rainfall in the areas where most of the solar projects are proposed to be located. Change in design of sub station and connected equipment directed by GETCO. Some also raised the issue of non availability of evacuation facility by the state transmission utility, Gujarat Energy Transmission Corporation.
GERC further stated that "Though, the petitioners have put forward a number of reasons for the relief they have sought, none of the petitioners including the Association of Solar Power Developers, which has filed a separate petition, has indicated any ground whatsoever which is of universal application either in the State of Gujarat or a major part thereof by which all the projects are affected by such factors.”
According to GERC, several projects have been or are likely to be commissioned during the control period itself. It said that "The reasons indicated by the petitioners appear to be in the manner of indirectly invoking the Force Majeure clause specified in the PPA, which cannot be addressed by a general order. Hence, all the petitions are dismissed.”
Earlier, the solar power developers were given a deadline of December 31st 2011 to commission the solar power projects in the state. However, the deadline was later extended till January 28th 2012, but the developers further demanded an extension of deadline by about six months.
(Sourced from BS)
