Five major legal disputes between the solar developers and the state Governments
Over the past few years, there have been several legal cases between solar developers and state governments in India. These cases have highlighted the challenges faced by the solar industry in the country, including land acquisition, power purchase agreements, and regulatory issues. In this blog article, we will explore five such legal cases and their impact on the solar industry.
- ACME Solar vs. Andhra Pradesh Discoms
In 2019, ACME Solar Holdings filed a petition in the Andhra Pradesh High Court against the state’s power distribution companies (Discoms) for renegotiating the power purchase agreement (PPA) signed between them. The Discoms had requested a reduction in the tariff agreed upon in the PPA, citing a decline in solar power prices. However, ACME Solar argued that the Discoms did not have the authority to renegotiate the PPA unilaterally. The High Court ruled in favor of ACME Solar and directed the Discoms to honor the original PPA.
- Renew Power vs. Karnataka Electricity Regulatory Commission
In 2019, Renew Power approached the Karnataka Electricity Regulatory Commission (KERC) against a regulatory order that reduced the solar tariff in the state. Renew Power argued that the order was arbitrary and would adversely affect the solar industry in the state. The KERC eventually revoked the order and restored the original tariff.
- ReNew Power vs. Rajasthan Discoms
In 2020, ReNew Power approached the Rajasthan High Court against the state’s Discoms for delaying payments for power supplied under a PPA. ReNew Power argued that the delay in payments had caused financial strain and affected its ability to service its debt. The High Court directed the Discoms to clear the dues within a stipulated time frame.
- ACME Solar vs. Gujarat State Electricity Corporation
In 2021, ACME Solar approached the Gujarat High Court against the Gujarat State Electricity Corporation (GSEC) for canceling a PPA signed between them. GSEC argued that the PPA was not valid as it did not have the approval of the state regulator. ACME Solar contended that it had followed due process and obtained all necessary approvals. The High Court directed GSEC to honor the PPA and make payments to ACME Solar.
- Azure Power vs. Haryana Power Purchase Centre
In 2021, Azure Power approached the Delhi High Court against the Haryana Power Purchase Centre (PPC) for delaying payments for power supplied under a PPA. Azure Power argued that the delay in payments had caused financial strain and affected its ability to service its debt. The High Court directed the PPC to clear the dues within a stipulated time frame.
Table summarizing legal cases between solar developers and state governments:
| Case | Year | Description | Outcome |
|---|---|---|---|
| ACME Solar vs. Andhra Pradesh Discoms | 2019 | Discoms wanted to renegotiate PPA unilaterally, ACME Solar challenged in High Court | Ruling in favor of ACME Solar |
| Renew Power vs. Karnataka Electricity Regulatory Commission | 2019 | Regulatory order reduced solar tariff, Renew Power approached KERC | Order revoked and original tariff restored |
| ReNew Power vs. Rajasthan Discoms | 2020 | Discoms delayed payments for power supplied under PPA, ReNew Power approached High Court | Direction to clear dues within stipulated time frame |
| ACME Solar vs. Gujarat State Electricity Corporation | 2021 | GSEC canceled PPA, ACME Solar approached High Court | Direction to honor PPA and make payments to ACME Solar |
| Azure Power vs. Haryana Power Purchase Centre | 2021 | PPC delayed payments for power supplied under PPA, |