The Gujarat Urja Vikas Nigam Limited (GUVNL) filed a petition against Juniper Green Energy Pvt. Ltd. and other parties regarding a 100 MW solar power project under the Gujarat State Electricity Regulatory Commission (GERC). The case revolved around the Power Purchase Agreement (PPA) that was signed between GUVNL and Juniper Green Energy on August 26, 2021, for a tariff of Rs. 2.22 per unit. Juniper later requested a revision in the commissioning timeline, citing delays due to global supply chain disruptions and increased module prices due to policy changes, including the imposition of Basic Customs Duty (BCD) and the Approved List of Models and Manufacturers (ALMM) mandate.
Juniper sought an extension of 258 days, requesting the date to be moved to May 10, 2023. GUVNL, however, denied this extension and imposed penalties for the delay. The case then moved to GERC for adjudication. During the hearings, Juniper submitted that the international module market experienced price hikes due to post-COVID supply issues and geopolitical tensions, and policy changes in India that added further financial and logistical challenges.
GUVNL, on the other hand, argued that the reasons cited did not qualify under the Force Majeure clause. GERC observed that while certain macroeconomic events like BCD and ALMM affected the renewable energy industry as a whole, the developer must prove specific adverse impacts on their project. The commission granted a partial extension of 107 days, up to December 10, 2022, considering some delay due to unforeseen circumstances. Any capacity commissioned beyond that date would be subject to reduced tariffs and other penalties as per the PPA.
The ruling highlighted the need for developers to plan with greater foresight and flexibility, especially in a rapidly evolving regulatory and economic landscape. The order set a precedent on how Force Majeure claims are evaluated in renewable energy contracts, stressing the importance of evidence and contract discipline.