🏭 Context and Participants
In accordance with Section 86(1)(f) of the Electricity Act, 2003, Kundan Solar (previously Astronfield Gujarat Pvt. Ltd.) has submitted a formal petition to the Gujarat Electricity Regulatory Commission (GERC). A solar facility and a Power Purchase Agreement (PPA) with Gujarat Urja Vikas Nigam Ltd. (GUVNL), which was first signed on April 30, 2010, and then modified on August 7, 2010, are at issue in this case. After repairs and reactivation, Kundan Solar aims to return the plant to its full installed capacity of 11.5 MW.
📑 Methodological Advancements
- The petition was backed by an Interim Application (IA No. 16 of 2025), which urged GERC to grant temporary orders enabling the completion of restoration work. On June 26, 2025, the case was heard for the first time.
- GERC pointed out that important documents were still missing, such as site contour reports, technical details, and records from insolvency procedures. These records are necessary to evaluate site-level grading, flood-related damage, and technical specification compliance.
- Despite being given adequate notice, the opposing party (GUVNL) did not show up for the hearing.
🔧 Important Points Born
- In order to evaluate the petition’s validity, GERC requested several records:
- Physical handover agreements and documentation from the insolvency resolution (NCLT/NCLAT).
- Data from site contouring is used to assess the risk of flooding and waterlogging.
- Technical specifications for the inverters and modules.
- Proof of adherence and post-damage maintenance and repair procedures.
- Within four weeks, Kundan Solar promised to supply the necessary data, along with any other written submissions that might be required. Both sides were allowed to add to their arguments until that point.
📅 The Next Steps
- GERC will examine the filed materials and make a decision regarding capacity restoration during the case’s rehearing on August 19, 2025, at 11:30 AM.
At-a-Glance Summary of the item Details Respondent GUVNL Plant Capacity 11.5 MW (installed, under PPA terms from 2010) Petitioner Kundan Solar (previously Astronfield Gujarat Pvt. Ltd.)
Legal Standing PPA disputes decided in accordance with Electricity Act Relief Section 86(1)(f) sought to resume full operations following extended interruption and floods.
Hearing History: IA submitted; first hearing on June 26, 2025; no show from GUVNL
Awaiting NecessitiesTechnical specifications, flood risk information, and insolvency and site documentation
Next Hearing: 11:30 AM on August 19, 2025
🎯 Why This Matters:
- The case calls into question whether long-term PPA agreements may be upheld following asset impairment and restructuring through insolvency.
- The rights of developers to repair and refurbish assets while maintaining original tariff and capacity parameters are still being scrutinized as solar panels deteriorate. This is a precedent-setting area for legacy projects.
- Clarity in regulations is required: The case’s conclusions may influence how regulators strike a balance between grid dependability, PPAs, and insolvency legislation in the face of long-term asset interruptions.
