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APTEL Overrules Andhra Regulator, Restores Wind Project PPA with Full Compensation

The Appellate Tribunal for Electricity (APTEL) has overturned a decision by the Andhra Pradesh Electricity Regulatory Commission (APERC) to cancel a power purchase agreement (PPA) with Guttaseema Wind Energy for a 60 MW portion of its 80 MW wind project. APTEL ruled that the first 20 MW of the project, synchronized on March 22, 2018, should be considered the commercial operation date (COD) for the entire project. This interpretation aligns with Article 1.4 of the PPA, which states that for non-conventional projects, the COD of the entire plant is the synchronization date of the first unit.

The Tribunal ordered Andhra Pradesh's distribution company, APSPDCL, to immediately allow synchronization of an additional 20 MW unit completed in 2019 and to connect the remaining 40 MW. It also directed APSPDCL to pay compensation for power not generated from May 2019 onward due to its inaction.

The original dispute began when APSPDCL canceled the PPA in 2020, arguing the remaining capacity missed the deadline. However, APTEL confirmed the PPA was wrongly terminated and emphasized that clearly defined contract clauses must be honored. It also dismissed claims that developers were exploiting old tariffs, stating delays often harm developers more than benefit them financially.