MERC Rejects Retrospective EPA for 1.6 MW Wind Project

The Maharashtra Electricity Regulatory Commission (MERC) has rejected a petition by Ratnagiri Wind Power Projects Pvt. Ltd. (RWPPPL) seeking a retrospective Energy Purchase Agreement (EPA) with Maharashtra State Electricity Distribution Co. Ltd. (MSEDCL) for its 1.6 MW wind turbine.

The dispute concerns wind turbine generator WTG T-43, which was commissioned on October 9, 2015, and subsequently injected electricity into the grid. RWPPPL had sought an EPA from the commissioning date, arguing that the turbine had received the necessary approvals and that electricity generated by the project had been supplied to MSEDCL.

The company also sought payment of around ₹3.29 crore for electricity supplied between October 2015 and June 2020, along with a late payment surcharge. In addition, RWPPPL requested compensation for generation losses following the turbine’s disconnection and sought its reconnection to the grid.

According to the petition, RWPPPL had submitted credit notes to MSEDCL for electricity generated while no formal EPA was in place. The company argued that MSEDCL had effectively accepted and utilised the electricity, creating an enforceable contractual relationship through the conduct of the parties.

RWPPPL also relied on previous decisions of the Appellate Tribunal for Electricity (APTEL) involving renewable energy generators in similar circumstances.

However, MSEDCL did not execute an EPA for the project. The situation continued until June 2020, when the distribution utility directed the disconnection of wind and solar generators without valid power purchase or energy purchase agreements, following directions from the Maharashtra State Load Despatch Centre (MSLDC).

WTG T-43 was disconnected on June 5, 2020

MERC held that the absence of a valid EPA was central to the matter and did not accept RWPPPL’s claim that continued grid connectivity could be justified by the turbine’s previous electricity injections.

The Commission noted that MSLDC had identified around 1,181 MW of uncontracted wind and solar capacity in Maharashtra in 2020. MSLDC subsequently advised MSEDCL to disconnect generators without valid contractual arrangements to prevent unscheduled electricity injection into the grid.

MERC also referred to the applicable forecasting and scheduling framework, under which generation and dispatch are required to be carried out in accordance with contracts between generating companies and licensees.

The Commission therefore declined to direct MSEDCL to execute an EPA retrospectively from October 2015 or make payments for the electricity supplied during the period without a valid agreement.

MERC also rejected RWPPPL’s request for reconnection, holding that the turbine could not be reconnected in the absence of a valid EPA. The Commission further observed that allowing reconnection merely to facilitate Open Access would effectively amount to granting the final relief sought by the petitioner at the interim stage.

The ruling underscores the importance of having valid contractual arrangements in place for renewable energy projects before electricity is injected into the grid and highlights the regulatory implications for generators operating without formal PPAs or EPAs.