CERC To Acme Solar-Complete 300 MW Solar Project After Paying Penalty

Ruling on a case involving Acme Solar and Central Transmission Utility of India (CTUIL), the Central Electricity Regulatory Commission (CERC) has allowed Acme Solar an extension on its delayed project in Rajasthan, with the provison of more demages in case it does not deliver a phased commissioning under the new deadlines.

Petition Overview: ACME Solar Holdings Ltd and ACME Sikar Solar Pvt. Ltd filed a petition seeking an extension of time for commissioning a 300 MW Solar Power Project from October 20, 2024, to January 25, 2025.

Petitioners’ Arguments: Acme Solar argued that they have made significant progress in project development, including land acquisition and financial closure. Delays in commissioning of the project were caused by regulatory and administrative issues, including the need to convert connectivity from the LOA route to the land route. Protests and environmental concerns regarding the cutting of khejri trees have also been cited as causing further delays to the project.

• Commission’s Decision:
  • Condemned the delay but acknowledged the substantial progress made by the petitioners. An amount of 50% of ( sum of Conn-BG1 +Conn-BG2+Conn-BG3, which is Rs 9.5 crores) = Rs 4.75 Crores to be paid by Acme Solar  to the CTUIL within two weeks ( 14 days) of the issuance of the instant Order, as compensation towards delayed commissioning from committed date of
    20.10.2024 till 20.01.2025.
  • Allowed an extension for commissioning the project until April 21, 2025, with part commissioning to commence in phases before March 2025.
  • Imposed a compensation mechanism for the delay, requiring the petitioners to pay a proportionate amount based on the un-commissioned capacity. Post 20.1.2025, charges towards compensation shall be payable on a per day basis proportionate to the quantum which has not achieved COD calculated as (Rs Crore) = [(quantum of capacity which has not achieved COD in MW / 300 MW) X (no. of days delayed beyond 20.1.2025 / 90 days) X 4.75 Crore]. Such amount for the next 15 days shall be furnished in advance before the start of such 15 days to the CTUIL.