Regulatory Framework Proposed For Extension Of Evacuation Timeline; Commission Seeks Structured Mechanism For Delayed Renewable Energy Projects
Panchkula: The Haryana Electricity Regulatory Commission (HERC) has taken up an important regulatory matter concerning the proposed amendment of the procedure governing Green Energy Open Access connectivity in Haryana, with the objective of creating a structured framework for extension of timelines for construction of evacuation systems by renewable energy developers.
The proceedings arise from a petition filed by Haryana Vidyut Prasaran Nigam Limited (HVPNL) seeking approval for amendment of Clause 10 of the Procedure for Grant of Connectivity and Green Energy Open Access in the State of Haryana. The petition has been filed under Section 39(2)(d) and Section 40(c) of the Electricity Act, 2003, read with Regulations 4, 6 and 11 to 13 of the Haryana Electricity Regulatory Commission (Green Energy Open Access) Regulations, 2023.
The proposed amendment seeks to introduce provisions dealing with extension of tentative completion timelines for construction of evacuation systems, along with protective measures including submission of an Indemnity Bond-cum-Undertaking by applicants seeking such extension. The matter has gained significance as renewable energy developers across the State increasingly seek connectivity and open access approvals, while delays in execution of dedicated evacuation infrastructure have created regulatory challenges for the State Transmission Utility.
Background Of HVPNL Petition
HVPNL, being the State Transmission Utility (STU), has been designated as the State Nodal Agency for grant of medium-term and long-term Green Energy Open Access under the HERC Regulations, 2023. The Green Energy Open Access Regulations, 2023 require preparation of a detailed procedure governing connectivity, applications, charges, bank guarantees and related requirements.
Accordingly, HVPNL prepared the Procedure for Grant of Connectivity and Green Energy Open Access in the State of Haryana, which was approved by the Commission. The existing Clause 10 of the Procedure deals with the cost of dedicated lines and bays and provides tentative timelines for completion of evacuation systems where applicants undertake construction themselves. The timelines vary according to voltage level, including 9 months for 11 kV and 33 kV systems, 12 months for 66 kV and 132 kV systems, 15 months for 220 kV systems and 24 months for 400 kV systems.
However, the existing procedure does not specifically provide a mechanism for considering applications seeking extension of these timelines.
Need For Regulatory Amendment
According to HVPNL, after implementation of the Green Energy Open Access Procedure, several applicants and generators who had obtained connectivity and open access approvals were unable to complete dedicated evacuation systems within the prescribed timelines. The petition states that various reasons contributed to such delays, including:
- delay in land acquisition;
- procurement issues;
- supply chain disruptions;
- force majeure events;
- site-specific difficulties.
HVPNL informed the Commission that multiple applications had already been received seeking extension of completion timelines. The absence of a prescribed mechanism has created difficulties for HVPNL in processing such applications.
According to the petition, the present framework does not provide clarity regarding:
- procedure for seeking extension;
- authority competent to approve extension;
- conditions for grant of extension;
- liability arising due to delay.
Proposed Safeguards For Renewable Energy Developers
HVPNL has proposed insertion of new clauses in Clause 10 of the Procedure. Under the proposed mechanism, an applicant seeking extension would be required to submit a detailed request containing:
- period for which extension is required;
- reasons for delay;
- steps being taken for completion;
- present status of evacuation work.
The applicant would also be required to submit:
- extension of validity of Connectivity Bank Guarantee;
- Indemnity Bond-cum-Undertaking on prescribed format.
Further, the proposed amendment provides that extension requests would be considered by the Whole Time Directors of HVPNL and the applicant seeking extension would have to pay a non-refundable extension fee equivalent to 10% of total application fee per month, subject to a maximum ceiling of twice the original application fee.
Purpose Of Indemnity Bond Requirement
One of the major proposals in the petition is introduction of an Indemnity Bond-cum-Undertaking.
HVPNL has stated that delays in construction of evacuation infrastructure may create financial exposure for HVPNL, DISCOMs and Haryana Power Purchase Centre (HPPC).
The proposed undertaking requires applicants to indemnify utilities against losses, damages, costs or liabilities arising due to extension of timelines.
The proposed mechanism also provides that if liabilities arise due to extended timelines, the same may be recovered from the applicant, including through adjustment or encashment of connectivity bank guarantees.
Proceedings Before HERC
The matter was heard by HERC on 13.08.2026.
The Commission considered several impleadment applications filed by entities including:
- M/s Hexa Climate Solutions Private Limited;
- M/s Urmiya Solar Private Limited;
- M/s Truere Solar Private Limited.
During the hearing, counsel appearing for HVPNL argued that the impleadment applications, in the manner filed, were not maintainable and were merely an attempt to avoid payment of applicable petition filing fee.
HVPNL was represented by Mr. Raghujeet Singh Madan, Ms. Aerika Singh and Mr. Lovepreet Singh, Advocates, along with HVPNL officials. On the other hand, counsel appearing for Respondent No.1 submitted that the respondent had no objection to payment of applicable filing fee and was within its rights to file a counter-claim.
Important Clarification: Counter-Claims Not Finally Allowed
The Commission thereafter examined the nature of the applications. HERC observed that the impleadment applications, in substance, constituted counter-claims against the main petition. Accordingly, for the purpose of payment of filing fee, the applications were directed to be treated as counter-claims.
The applicants were directed to deposit the differential filing fee of Rs.45,000/- each, considering the applicable filing fee of Rs.50,000/- for such claims. However, the order does not finally adjudicate whether such counter-claims are maintainable on merits. Therefore, the correct legal position is that HERC has only determined the procedural classification and fee requirement, while the substantive issues remain open for consideration.
Next Hearing And Future Impact
The Commission directed HVPNL to file its reply to the impleadment applications by 25 August 2026.
The respondents were permitted to file rejoinder by 05 September 2026.
The matter has been listed for arguments on 07 September 2026.
The final decision on the proposed amendment may have significant implications for renewable energy developers seeking connectivity and open access in Haryana.
Conclusion
The HVPNL petition represents an important regulatory effort to address practical difficulties emerging in implementation of the Green Energy Open Access framework. While the proposed amendment seeks to provide clarity and accountability for delayed evacuation infrastructure, renewable energy developers may closely watch the proceedings as additional compliance requirements, indemnity obligations and extension fees could impact project execution timelines. The interim order passed by HERC primarily deals with procedural aspects, particularly the treatment of impleadment applications as counter-claims for filing fee purposes.
The larger regulatory question regarding approval of the proposed amendment, rights of developers seeking extensions and obligations of applicants will be examined in the subsequent proceedings.
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