Petition of the Electricity Act (Promotion of Generation of Electricity from Must-Run Power Plant) of the CERC (Conduct of Business) Regulations for solar PV power project with BESS at South Andaman – EQ

Summary:

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## 📄 Case Overview

| Parameter | Details |
|———–|———|
| **Petition No.** | 171/MP/2024 |
| **Petitioner** | NLC India Limited (NLCIL) |
| **Respondent** | Electricity Department, Andaman |
| **Subject** | Compensation for breach of **Must-Run status** of solar PV + BESS project |
| **Date of Hearing** | 25 March 2026 |
| **Next Hearing Date** | **24 April 2026** |
| **Coram** | Chairperson Jishnu Barua, Member Ramesh Babu V., Member Harish Dudani, Member Ravinder Singh Dhillon |

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## ⚖️ Legal Framework

| Regulation / Act | Relevance |
|——————|———–|
| **Section 79(1)(f), Electricity Act, 2003** | CERC’s power to adjudicate disputes |
| **IEGC, 2010 – Regulation 1.5(iv)** | Must-run status provisions |
| **Electricity (Promotion of Generation of Electricity from Must-Run Power Plant) Rules, 2021 – Rule 3** | Defines must-run power plants and compensation for breach |
| **CERC (Conduct of Business) Regulations, 2023 – Regulation 65(1)** | Procedural framework |

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## 📋 Current Status of Proceedings

| Event | Status |
|——-|——–|
| Previous ROP date | 23 December 2025 – CERC directed **Grid India** to submit a report |
| Current status (25 March 2026) | **Grid India has not yet submitted its report** |
| CERC direction | Grid India to submit report **within 3 weeks** |
| Parties’ obligation | Extend **necessary cooperation and assistance** to Grid India |
| Next hearing | **24 April 2026** |

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## 📌 Business Takeaways for NLC India & Other Must-Run Generators

| Takeaway | Implication |
|———-|————-|
| **Compensation claim pending** | NLCIL is seeking compensation for breach of must-run status (curtailment of solar + BESS). |
| **Grid India report is critical** | The report will likely form the technical basis for CERC’s decision on compensation. |
| **Delay not attributed to NLCIL** | Petitioner has complied; delay is from Grid India. |
| **Next hearing (24 April 2026)** | CERC will likely take a view after Grid India’s report is submitted. |
| **Must-run rules are enforceable** | This case will set a precedent for compensation claims under the 2021 Must-Run Rules. |

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## 🧭 Strategic Implications

### For NLC India:
– **Positive position:** Delay is not your fault; Grid India’s report is awaited.
– **Prepare for next hearing:** Once report is submitted, be ready with submissions on quantum of compensation.
– **Document all curtailment events:** Ensure clear linkage between breach of must-run status and financial loss.

### For Grid India:
– **Timely submission critical:** Report is due by ~15 April 2026 – any further delay may lead to CERC directions or cost consequences.

### For Other RE Generators (especially in island systems like Andaman & Nicobar):
– This case will clarify:
– What constitutes breach of must-run status for solar + BESS.
– How compensation is calculated under Rule 3 of the 2021 Must-Run Rules.
– Role of Grid India in technical assessment.

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