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ACME Heergarh Powertech Private Limited, a company that operates a 300 MW solar power project in Rajasthan, has filed an appeal with the Maharashtra Electricity Regulatory Commission (MERC) to extend the Scheduled Commercial Operation Date (SCOD) due to delays caused by the COVID-19 pandemic and global supply chain disruptions. The company had entered into a Power Purchase Agreement (PPA) with Maharashtra State Electricity Distribution Company Limited (MSEDCL) to supply electricity at a fixed tariff for 25 years, but faced difficulties in procuring essential equipment, particularly solar modules from China, due to the pandemic.
MERC initially granted a SCOD extension due to the first and second waves of COVID-19, but ACME sought a further extension until May 23, 2022, citing ongoing supply chain disruptions. The company argued that its suppliers in China had issued force majeure notices due to factory shutdowns and logistical challenges, and that the delays were beyond its control. MERC granted an extension until April 19, 2022, but imposed liquidated damages for the delay from April 20, 2022, to May 23, 2022, as ACME had delayed notifying MSEDCL about the disruptions.
ACME challenged this decision, arguing that the disruption had started earlier and continued beyond April 19, 2022, and that similar cases had received longer extensions. The appellate tribunal is reviewing ACME’s notices, communications with MSEDCL, and government policies related to COVID-19 disruptions, as well as MERC’s previous rulings on similar cases. The decision will determine whether ACME is entitled to a SCOD extension beyond April 19, 2022, and whether the imposition of liquidated damages was justified. The case highlights the challenges faced by renewable energy developers in meeting contractual obligations amid unforeseen global disruptions.