The Central Electricity Regulatory Commission (CERC) has rejected a plea by a renewable energy solutions company seeking interim protection against action by the Central Transmission Utility of India (CTUIL), including possible revocation of grid connectivity for its 200 MW hybrid renewable energy project.

The Commission held that Adyant Power, a subsidiary of Hexa Climate Solutions, failed to establish sufficient grounds for relief and declined to restrain CTUIL from proceeding under applicable regulations. The order pertains to the connectivity granted to Adyant at Mandsaur, Madhya Pradesh, under the land bank guarantee (Land BG) route.

Background

The petitioner, Adyant Power, was granted connectivity for a 200 MW hybrid renewable project comprising 101 MW solar and 99 MW wind capacity at Mandsaur. Another subsidiary of the same parent company, Hexa Energy MH10 (HEMPL), executed a power purchase agreement (PPA) with the Solar Energy Corporation of India (SECI) for 100 MW of renewable energy capacity linked to a related hybrid project.

The project was structured under the Land BG route, which requires the submission of land-related documents within specified timelines. The petitioner sought conversion of Adyant’s connectivity from the Land BG route to the letter of award (LoA)/ power purchase agreement (PPA) route based on the PPA executed by HEMPL.

Adyant sought protection from CTUIL’s direction to submit land documents, failing which, regulatory action, including revocation or cancellation of connectivity, could be initiated.

The petitioner argued that the General Network Access (GNA) Regulations allow group-level flexibility in project execution. It relied on Regulation 15.1 to contend that the use of connectivity among subsidiaries is permitted, and on Regulation 11A(5) to argue that compliance requirements, including land and financial closure, can be fulfilled by group entities.

On this basis, Adyant argued that a PPA executed by one subsidiary can be valid for converting connectivity held by another subsidiary.

CTUIL opposed the plea, maintaining that connectivity is granted to a specific legal entity and not to a corporate group. It argued that Regulation 11A( 4) requires that the same entity must hold both connectivity and the PPA or letter of award for conversion.

In this case, Adyant had connectivity but no PPA, while HEMPL had the PPA but no connectivity, making the petitioner ineligible for conversion.

Commission’s Analysis

The Commission examined whether Adyant was entitled to interim protection from coercive action and focused on the interpretation of relevant GNA provisions. It held that “utilization of connectivity” under Regulation 15.1 refers strictly to injection or drawal of power and does not extend to using another entity’s PPA.

It further held that Regulation 11A(4) clearly requires that the connectivity grantee itself seek conversion and that the PPA or LoA be in the name of the same entity. On Regulation 11A (5), the Commission acknowledged that subsidiaries may undertake project execution or assist in meeting certain conditions, but clarified that all responsibilities remain with the connectivity grantee.

It stated that compliance requirements, such as land acquisition, financial closure, and commercial operation, must be met by a single executing entity and cannot be distributed across multiple subsidiaries.

The Commission concluded that the petitioners had misinterpreted the regulatory provisions and failed to meet eligibility requirements. On this basis, it denied interim relief and allowed CTUIL to proceed in accordance with the regulations, including enforcement actions linked to non-submission of land documents.

Recently, CERC determined the value of “X” for computing deviation by wind and solar sellers under the Deviation Settlement Mechanism Regulations, 2024.

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