Energy Sector and

Infrastructure
 Electricity Generation?
Thermal Power Plants
Coal Fired,
Gas Fired,
Oil Fired
Nuclear Power Plants – Low Carbon Energy Source
Hydroelectrictric Power Plants
Geothermal Power Plants
Solar Power Plants
Wind Power Plants
Tidal Power Plants
 Central Electricity Authority (CEA)
INSTALLED GENERATION CAPACITY (SECTOR WISE)
AS ON 31.12.2022

Sector MW % of Total
Central Sector 98,795 24.2%
State Sector 1,04,918 25.6%
Private Sector 2,06,627 50.4%
Total 4,10,339
 Central Electricity Authority (CEA)
INSTALLED GENERATION CAPACITY (SECTOR WISE)
AS ON 31.12.2022

CATAGORY INSTALLED % of SHARE IN

GENERATION Total
CAPACITY(MW)

Fossil Fuel
Coal 203,775 49.7%
Lignite 6,620
1.6%
Gas 24,824 6.1%
Diesel 589 0.1%
Total Fossil Fuel 2,35,809 57.5 %
 Central Electricity Authority (CEA)
INSTALLED GENERATION CAPACITY (SECTOR WISE)
AS ON 31.12.2022
RES (Incl. Hydro) 167,750 40.7%
Hydro 46,850 11.4 %
Wind, Solar & Other RE 120,900 29.5 %
Wind 41,930 10.2 %
Solar 63,302 15.1 %
BM Power/Cogen 10,210 2.5 %
Waste to Energy 522 0.1 %
Small Hydro Power 4,936 1.2 %
Nuclear 6,780 1.7%
Total Non-Fossil Fuel 174,530 42.5%
 Electricity Infrastructure??
Electricity infrastructure consists of..
equipment and services
necessary to take electrical energy
generated from - hydroelectric dams, fossil
fuel (coal, natural gas, or oil), nuclear, solar,
wind, geothermal, and biomass power
plants (or electrical energy stored by energy
storage systems)
and transmit it to end-use residential,
commercial, and industrial customers.
 Electricity Infrastructure??
Includes transmission and distribution-level equipment –
power transformers,
voltage regulators,
circuit breakers,
switchgear,
capacitors,
fuses,
controls,
arresters,
conductor,
 Electricity Infrastructure??
Electric vehicle charging infrastructure
Associated grid control technologies
supervisory control and data acquisition (SCADA)
systems,
advanced distribution management systems
(ADMS),
distributed energy resource management systems
(DERMS),
virtual power plant (VPP),
cybersecurity systems etc.
 Electricity Infrastructure??
Electricity infrastructure can also include..
associated engineering,
procurement, and contracting (EPC),
accounting,
project financing,
research and development (R&D),
testing and certification (T&C),
and other related services.
 Laws relating to Electricity

The Indian Electricity Act 1910

The Electricity (Supply) Act 1948

The Electricity Regulatory Commission Act 1998

The Electricity Act 2003

The Electricity Amendment Bills 2014, 2018,

2021
 Laws relating to Electricity
Origin of Energy Sector in India –
British Regime – Private Participation.
1880 – Hydro-electrical power plant in
Darjeeling – A small 130 KW plant
1897 – Thermal Power Plant in Calcutta
 Laws relating to Electricity
Main legislation – Indian Electricity Act
– Providing framework for private
participation through grant of licenses
in distribution and supply of electricity.
Covering establishment of generating
station for electricity production.
 Laws relating to Electricity
Post Independence:
Policy Change
Power Production and Distribution – reserved
only for Public Sector
Industrial Policy Resolution of 1956
Reduction of Private participation by
Nationalization Policies…
Cancellation of Licenses
Introduction of grater regulations…
 Enactment of the Electricity
Supply Act 1948
 For supplementing the IEA 1910
Creation of Statutory Bodies
Central Electrical Authority
State Electrical Boards
Regional Electricity Boards

Complete State Monopoly in Electrical Sector with

minimal exemptions in power distribution
 Policy Change Post 1991
Amendment in legal framework for
private participation in generation
aspects.
1998 – Changes in the framework
for private participation in
transmission aspects
 The Electricity Regulatory
Commissions Act 1998
Under Common Minimum
National Action Plan for Power
(CMNPP)
Based on deliberations between many parties
Identification of gap between demand and
supply of power in India
 The Electricity Regulatory
Commissions Act 1998
Financial positions of State Electricity
Boards – Fast deterioring
No future of electrical sector without
viable state Electricity Boards
Need for improvement of the
performance aspects
 CMNPP
Identification of the creation of regulatory
commissions at
Central and State Levels
for Providing regulatory system for enabling
rationalization of electricity tariff
Transparent policies for subsidies
Promotion of efficient and environmentally
friendly policies
 The Electricity Act, 2003
Change in the entire legal framework
governing the Electricity Sector by the
Electricity Act, 2003
Electricity – Entry 38 of List III
 The Electricity Act, 2003
For coordination and development of
the power sector in India, providing a
comprehensive framework for power
development.
 The Electricity Act, 2003
Key objectives:
consolidating laws relating to
generation, transmission, distribution,
trading and the use of electricity;
promoting competition in the industry;
promoting efficient and environmentally
benign policies, among others.
 The Electricity Act, 2003
Recognition of the role of renewable energy
in the country's National Electricity Policy
 The Electricity Act, 2003
Provides a legal framework for restructuring of the
State Electricity Boards.
Private Participation in the areas of ..
Generation Segment
Transmission Segment
Distribution and Supply Segment
 The Electricity Act, 2003
Various authorities as per the act…
Regulatory Authorities
Monitoring Agencies
Authorities for operational aspects of electricity
system
Advisory Bodies
 Authorities

Regulatory Monitoring Operational Advisory

• Central Electricity Authority • Central Advisory
• Central Electricity • Investigating Authority
• National Load Dispatch Centre Committee
Regulatory Commission • Assessing Officer
• Regional Load Dispatch • Selection Committee
• Sate Electricity • Adjudicating Officer
Centre • State Advisory
Regulatory Commission • Chief Electricity
• State Load Dispatch Centre Committee
• Joint Commission Inspector
• Central Transmission Utility • Coordinate Forums
• Appellate Tribunal • Electricity Inspector • State Transmission Utilities
 The Electricity Act, 2003
Major Changes in the legal framework
govering electricity utilities (Sec. 7, 8, 9)
Generating Companies
Captive generating plants
Transmission licensee
Distribution licensee
Electricity trader
 Regulatory Authorities

1. Central Electricity Regulatory Commission

2. Sate Electricity Regulatory Commission

3. Joint Commission

4. Appellate Tribunal
 Central Electricity Regulatory
Commission – Sec. 76 - 79
• First constituted in ERCA 1998 – continued in EA 2003.
• Functions:
• Regulate tariffs
• Issue licenses
• Specify Grid Code with Grid Standards
• Regulation of inter-state transmission & decide tariffs
• Dispute Settlement functions
• Advisory Function
 State Electricity Regulatory
Commission – Sec. 82
• Discharging functions guided by National
Electricity Policy, Plan and Tariff Policies.
• Big Change – All functions vested by statute today
contrary to earlier practice where few by statues and
remaining by concerned state governments at their
discretion.
• Today – role of state govt. for functions of SERC
removed.
 State Electricity Regulatory
Commission – Imp. functions
• Tariff determination within state
• Regulate electricity purchase & procurement process
including prices
• Facilitation to intra-state transmission
• Promotion of electricity generation from renewable sources
• Adjudication of disputes between licensee and generating
companies
• Fee levy for purposes of Electricity Act 2003
• Also advisory functions – promotion of competition and
efficiency, investment etc.
 Joint Commission – Sec. 83
• Provision for JC by agreement between one
or more states or Central Govt. – with
jurisdiction over more than one state.
• May be a category of SERC with similar
functions of SERC
 Appellate Tribunal for Electricity –
Sec. 110 - 125
• Appeals from CERC and SERC to AT
• Powers of Civil Court
• Appeal to Supreme Court
 Monitoring Authorities
Part XII Investigation and Enforcement
1. Investigating Authority

2. Assessing Officer

3. Adjudicating Officer

4. Chief Electricity Inspector

5. Electricity Inspector
 Investigating Authority – Sec. 128

• CERC and SERC – empowered to direct any person

to investigate affairs of any generating company or
licensee
• Based on licensee’s failure to comply with conditions
• Generating company’s failure
• Adequate powers to investigate including
examination and production
 Assessing Officer – Sec. 126

• Power of State Government to designate officer as

‘assessing officer’
• Undertakes assessment of electricity charges
payable by a person indulging in unauthorized use
of electricity
• Appeals to Appellate authority
 Adjudicating Officer – Sec. 143

• Each electricity commission can appoint any

of its member as ‘Adjudicating Officer’
• For holding inquiry in such manner as may be
prescribed by relevant government after giving
any person opportunity for being heard for the
purpose of imposing penalty
• Appeal to Tribunal
 Chief Electrical Inspector & Electric
Inspector – Sec. 162
• For performing work within particular area with
respect to a particular class of works
• Electricity installation
• Responsible to ensure that only authorized
usage of electricity occurs and that
installations and works comply with relevant
laws and rules
 Chief Electrical Inspector & Electric
Inspector – Sec. 162
• To inquire into the cause of any accident affecting
the safety of public in relating to generation,
transmission and distribution.
• To inquire into the compliance by any person with
provisions of Electricity Act and regulations
• To make complaint for any offence under Electricity
Act
• To receive notices of accidents, failures and other
prescribed notices..
 Chief Electrical Inspector & Electric
Inspector – Sec. 162
• Major Changes – Ole Regime – EIs were
entrusted with powers to settle disputes arising
in relation to supply of electricity
• Now – Power to special courts.
 Special Courts – Sec. 152
• Power of State Govt. to constitute special
courts to provide speedy trial of offences under
the electricity act. (Sec. 135 – 139)
• Power to conduct proceedings in summary
manner
• Appeal to High Court
 Authorities governing Operational
aspects of Electricity System
• Central Electricity Authority

• National Load Dispatch Centre

• Regional Load Dispatch Centre

• State Load Dispatch Centre

• Central Transmission Utility

• State Transmission Utilities

 Central Electricity Authority –
Sec. 70
• Old Regime – Nodal authority in electricity
sector with regulatory, technical and advisory
functions including
• clearing power projects,
• formulation of tariff guidelines,
• grid standards,
• future planning of sector.
 Central Electricity Authority –
Sec. 70
• New Regime – Removal of regulatory
functions.
• Now to discharge functions directed by
the Central Govt.
• Body that establishes technical standards
and codes and undertakes advisory
functions
 Central Electricity Authority – Main
Functions
• Advisory – National Policy, Plans of system,
coordination with planning agencies,
recommendation to Central Govt.
• Technical – specify standards for plants, lines, grid,
safety requirements, operation and maintenance of
lines, electric meters
• R&D – data collection for schemes, projects, usage
data, public information, research in sector etc.
National Load Despatch Centre
– Sec. 26
 National Load Despatch Centre
– Sec. 26
• https://posoco.in/ - Power System Operation
Corporation Lts. (Earlier)
• For smooth transmission of electricity
throughout India
• Power to make region wise demarcation of the
country for coordination.
• Cannot engage in the business of trading electricity
 Regional Load Despatch Centre
– Sec. 27
• Optimum scheduling and despatch of
electricity
• Monitoring grid operation
• Account keeping
• Supervision and control on inter-state
transmission
 State Load Despatch Centre –
Sec. 31
• Apex body for ensuring integrated
operation of power system in the state.
• Same functions as regional centre
• Dispute to SERC.
 Central Transmission utility &
State Transmission Utiity
• Government Company to be notified.
 Advisory Bodies

1. Central Advisory Committee

2. Selection Committee

3. State Advisory Committee

4. Coordination Forums
State Electricity Boards
Offences and Penalties
Part XIV – Sec. 135 - 152
 Electricity Theft – Sec. 135
• Dishonestly-
• Taping, making connection with overhead,
underground or under water lines or cables,
service wires or facilities or
• Tempering meter, use or installation of tampered
meter, current reversing transformer, loop
connection or other device or method which
interferes with accurate or proper registration of
meter or result in stealing or wastage of electricity
 Electricity Theft – Sec. 135
• Damaging or destroying electricity meter,
apparatus, equipment or wire or causes or
allowing any of them to be so damaged or
destroyed as to interfere with the proper or
accurate metering or electricity
• Using electricity through tempered meter
• Using electricity for the purpose other than for
which usage was authorized.
 Electricity Theft – Sec. 135
• Punishment – 3 years imprisonment or fine or
both.
• Fine:
• In case of load does not exceed 10 kilowatt, fine
not less than 3 times of financial gain due to theft &
6 times in case of subsequent conviction
• In case of load exceed 10 kilowatt, fine not less
than 3 times of financial gain due to theft &
imprisonment not less than 6 moths to 5 years in
case of subsequent conviction.
 Electricity Theft – Sec. 135
• In the event of second and subsequent conviction of a
person where the load abstracted, consumed, or used
or attempted abstraction or attempted consumption or
attempted use exceeds 10 kilowatt, such person shall
also be debarred from getting any supply of electricity
for a period which shall not be less than three months
but may extend to two years and shall also be debarred,
from getting supply of electricity for that period from any
other source or generating station:
 Electricity Theft – Sec. 135
• Provided also that if it is proved that any artificial
means or means not authorised by the Board or
licensee or supplier, as the case may be, exist for
the abstraction, consumption or use of electricity
by the consumer, it shall be presumed, until the
contrary is proved, that any abstraction,
consumption or use of electricity has been
dishonestly caused by such consumer.
 Electricity Theft – Sec. 135
 (1-A) Without prejudice to the provisions of this Act, the licensee
or supplier, as the case may be, may, upon detection of such
theft of electricity, immediately disconnect the supply of
electricity:
 Officer shall lodge a complaint in writing relating to the
commission of such offence in police station having jurisdiction
within 24 hours from the time of such disconnection:
 On deposit or payment of the assessed amount or electricity
charges in accordance with the provisions of this Act without
prejudice to the obligation to lodge the complaint as referred to
in the second proviso to this clause, restore the supply line of
electricity within 48 hours of such deposit or payment.
 Power of Search, Seizure and
Inspection
Power of authorised Officer to
(a) enter, inspect, break open and search any place or
premises in which he has reason to believe that electricity
has been or is being used unauthorisedly;
(b) search, seize and remove all such devices, instruments,
wires and any other facilitator or article which has been or is
being used for unauthorised use of electricity;
(c) examine or seize any books of account or documents
which in his opinion shall be useful for or relevant to, any
proceedings in respect of the offence
 Theft of electric lines and
 Dishonestly - materials – Sec. 136
 (a) cuts or removes or takes away or transfers any electric line, material or
meter from a tower, pole, any other installation or place of installation or any
other place, or site where it may be rightfully or lawfully stored, deposited, kept,
stocked, situated or located, including during transportation, without the
consent of the licensee or the owner, as the case may be, whether or not the
act is done for profit or gain; or
 (b) stores, possesses or otherwise keeps in his premises, custody or control, any
electric line, material or meter without the consent of the owner, whether or not
the act is committed for profit or gain; or
 (c) loads, carries, or moves from one place to another any electric line,
material or meter without the consent of its owner, whether or not the act is
done for profit or gain,
 is said to have committed an offence of theft of electric lines and materials, and
shall be punishable with imprisonment for a term which may extend to three
years or with fine or with both.
 Punishment for receiving stolen
property – Sec. 137
Whoever, dishonestly receives any stolen
electric line or material knowing or having
reasons to believe the same to be stolen
property, shall be punishable with
imprisonment of either description for a term
which may extend to three years or with fine
or with both.
 Interference with meters or works
of licensee. – Sec. 138
 (a) unauthorised connection of any meter, indicator or apparatus with
any electric line through which electricity is supplied by a licensee or
disconnects the same from any such electric line; or
 (b) unauthorised reconnection of any meter, indicator or apparatus with
any electric line or other works being the property of a licensee when
the said electric line or other works has or have been cut or
disconnected; or
 (c) lays or causes to be laid, or connects up any works for the purpose of
communicating with any other works belonging to a licensee; or
 (d) maliciously injures any meter, indicator, or apparatus belonging to a
licensee or wilfully or fraudulently alters the index of any such meter,
indicator or apparatus or prevents any such meter, indicator or
apparatus from duly registering;
 Interference with meters or works
of licensee. – Sec. 138
Punishment - imprisonment for a term which may
extend to three years, or with fine which may
extend to ten thousand rupees, or with both, and,
in the case of a continuing offence, with a daily
fine which may extend to five hundred rupees;
 Negligently breaking or
damaging works – Sec. 139
Whoever, negligently breaks, injures, throws
down or damages any material connected
with the supply of electricity, shall be
punishable with fine which may extend to
ten thousand rupees.
Sec. 140 - Penalty for intentionally injuring works.—
Whoever, with intent to cut off the supply of
electricity, cuts or injures, or attempts to cut or
injure, any electric supply line or works, shall be
punishable with fine which may extend to ten
thousand rupees.
Sec. 141 - Extinguishing public lamps.—Whoever,
maliciously extinguishes any public lamp shall be
punishable with fine which may extend to two
thousand rupees.
 Punishment for non-compliance of
directions by Appropriate Commission –
Sec. 142
In case any complaint before the Appropriate Commission
by any person or
if Commission is satisfied that any person has contravened
any of the provisions of this Act or any direction issued by the
Commission,
Penalty of one lakh rupees for each contravention and in
case of a continuing failure with an additional penalty which
may extend to six thousand rupees for every day during
which the failure continues after contravention of the first
such direction.
 Civil court not to have jurisdiction –
Sec. 145
No civil court shall have jurisdiction to entertain
any suit or proceeding in respect of any matter
which an assessing officer referred to in Section
126 or an appellate authority referred to in Section
127 or the adjudicating officer appointed under
this Act is empowered by or under this Act to
determine and no injunction shall be granted by
any court or other authority in respect of any
action taken or to be taken in pursuance of any
power conferred by or under this Act.
 Punishment for non-compliance of
orders or directions – Sec. 146
Whoever, fails to comply with any order or direction given
under this Act, within such time as may be specified in the
said order or direction or contravenes or attempts or abets
the contravention of any of the provisions of this Act or any
rules or regulations made thereunder, shall be punishable
with imprisonment for a term which may extend to three
months or with fine which may extend to one lakh rupees,
or with both in respect of each offence and in the case of a
continuing failure, with an additional fine which may extend
to five thousand rupees for every day during which the
failure continues after conviction of the first such offence:
 Cognizance of offences – Sec. 151

No court shall take cognizance of an offence punishable

under this Act except upon a complaint in writing made by
the Appropriate Government or Appropriate Commission
or any of their officer authorised by them or a Chief
Electrical Inspector or an Electrical Inspector or licensee or
the generating company, as the case may be, for this
purpose:
Cognizable and Non-Bailable offence – Sec. 151 B
 Compounding of offences - 152

1. Industrial Service twenty thousand rupees;

2. Commercial Service ten thousand rupees;
3. Agricultural Service two thousand rupees;
4. Other Services four thousand rupees:
 Important Documentation
Power Purchase Agreement
Implementation Agreement / State Support
Agreement
Land Lease Agreement
Fuel Supply Agreement
Fuel Transportation Agreement
 Power Purchase Agreement
 Essentially a Bulk Offtake Agreement for
the sale of power produced by the
generating station.
Previous Regime:
PPA – Most significant as GenCom can sell
power to only SEB of state in which
Generation Station is established or states
which has authorized transactions.
For sale of electricity, prior consent from
Govt – was must.
 Power Purchase Agreement
Present Situation:
Electricity Act 2003 – no mandate to sell
electricity to the SEBs.
Today PPA – more commercial document
providing legal framework for sale and
purchase of electricity.
Most important for GenComs – provides risk
mitigation
 Fuel Supply Agreement
Critical contractual documentation for
GenCom
Focusing on distribution of risks reflected in
PPA with SEBs
Covering GenCom from issues relating to
non-availability or non-supply of fuel
required by plant.
 Fuel Supply Agreement
Treatment of transportation risks
POS for Fuel Consignment
Testing of quality and quantity of fuel
Provisions of storage and handling of fuel
Determination of time schedule for delivery
Determination of price
Ability for fuel supplier for sufficient supply
 Fuel Transportation Agreement
Important for power projects to shift the
risk relating to transportation of fuel to the
transporter
Role of Railways Act 1989.
Role of Coal Transportation Policy 1997 by
Union Government
For sharing risk between SEB and
Railways
 Uttar Haryana Bijli Vitran Nigam v.
Adani Power (2019) - SC
State of Haryana – Division of region wise
DisComs.
Appeal to SC. Also by Gujarat Urja Vikas Nigam
Ltd. (GUVNL) – Both heard together
SEZ in 2005 – SEZ developers given certain
exemptions in customs, excise, etc.
Adani – Codeveloper of Mundra SEZ in Kutch
District, Gujarat
GUVNL – Approval to have power plant in
Mundra – Established and PPA with Adani
 Uttar Haryana Bijli Vitran Nigam v.
Adani Power (2019) - SC
2015 – Withdrawal of exemptions by Govt.
2016 – Withdrawal of Service Tax exemption.
Move by Adani to CERC for compensation due
to change in law according to provisions of PPA
(Article 13)
Parties agreed – quantum of compensation in
any case shall be determined by appropriate
commission and it shall be final.
However appeal may be filed in the appellate
body according to provisions of law.
 Uttar Haryana Bijli Vitran Nigam v.
Adani Power (2019) - SC
Supreme Court – held that Adani Ltd. is
entatiled legally for benefits as per Article
13 of PPA and not on basis of equity and
fairness.
Appellate tribunal has taken right decision.
No need to interfere with the decision.
 Energy Watchdog v. Central Electricity
Regulatory Commission (2012)
 February 1, 2006, - GUVNL - issued a notice inviting bidders
for a long-term supply of power.
 The bidders were allowed to choose escalable, non-
escalable, or partly non-escalable tariffs so that they can
cover their respective future risks.
 May 25, 2006, Haryana Utilities also issued an invitation
notice to bidders intending to make a long-term supply of
2000 MW of power.
 The bid documents and the process of working were
accepted by both the (GERC) and the (HSRC), which were
incorporated in those documents by GUVNL and the
Haryana Utilities.
 Energy Watchdog v. Central Electricity
Regulatory Commission (2012)
January 2007, Adani Enterprises Consortium
submitted bid for the supply of 1000 MW of power
to GUVNL.
PPA between GUVNL and Adani Power.
November 24, 2007, Adani Power submitted bid for
supply of 1425 MW of power to Haryana Utilities -
two PPAs with Haryana Utilities.
In 2010 and 2011 - change of law in Indonesia -
revised the export cost of coal from Indonesia.
 Energy Watchdog v. Central Electricity
Regulatory Commission (2012)
Petition before CERC by Adani Power under sec. 79 of

the Electricity Act, 2003 – For backing out from the PPA

or to alter the PPA to restore the same financial

conditions.
 Energy Watchdog v. Central Electricity
Regulatory Commission (2012)
The Commission levied liability of fuel price variation
on to the consumers, and allowed compensatory
tariff to Tata Power and Adani Power, to the tune of
Rs. 2,300 crore and Rs. 3,600 crore respectively till
March 2016.
Following this order, regulatory commissions of
several other states such as Maharashtra, Uttar
Pradesh, and Rajasthan walked on the same
approach of modifying competitively set tariffs by
granting compensatory tariffs.
 Energy Watchdog v. Central Electricity
Regulatory Commission (2012)
The order of CERC – challenged before the Appellate
Tribunal for Electricity (APTEL) - rejected the use of
regulatory power to grant relief to the projects.
It held that altering the domestic coal distribution policy
and declaration of the Indonesian regulation cannot be
viewed as a “change in law” under the PPA.
The change in the price of imported coal falls under the
ambit of “force majeure“ - therefore, it administered the
commission to decide the reasonable relief that should
be granted to such projects.
 Energy Watchdog v. Central Electricity
Regulatory Commission (2012)
But, due to lack of satisfaction from this order,
again the appeals by several companies and
NGOs were made to the Supreme Court of
India.
The order of CERC - overruled by the APTEL.
APTEL’s order - overturned by the Supreme
Court.
 Energy Watchdog v. Central Electricity
Regulatory Commission (2012)
Issues:
Whether there is a change in laws and so
that PPAs can be revised.
Whether force majeure should apply or not,
to the matter as the price change is making
it impossible to follow the agreement.
Whether a change in foreign law is pari
materia in India.
 Energy Watchdog v. Central Electricity
Regulatory Commission (2012)
April 11, 2017 SC overruled the decision of both
the CERC and the APTEL, by stating that no
compensatory relief should be given to the
sellers.
Further, it stated that no person or company is
allowed to back out from the agreement based
on the frustration of the subject matter, as the
Power Purchase Agreements had not made it
mandatory that the coal has to be imported only
from Indonesia.
 Energy Watchdog v. Central Electricity
Regulatory Commission (2012)
Also, the change in the law in Indonesia
has nothing to do with laws in India and
therefore cannot be taken into account for
giving relief in India.
Moreover, the words “any change in law”
in the PPA are restricted to the change in
electricity laws in India and not foreign
laws.
 Current Position?
October 2018 – Supreme Court has allowed
re-negotiation of PPA
Amendments to be made in PPA subject to
approval of CERC.
Power Purchase Agreement – Key
Document
 Power Purchase Agreement
 Important Contents:
Definitions & Interpretations
Conditions Precedent
Development Stage
Construction Period
Commissioning and Entry in Commercial Services
Plant Operation and Maintenance
Dedication of Capacity, Delivery of Energy and Declaration of
Availability
Metering
Switchyard and Transmission Facilities
 Power Purchase Agreement
 Important Contents:
Rates of Payment
Billing and Terms of Payment
Insurance
Force Majeure
Changes in Law
Term and Termination
Liability and Indemnity
Representation and Warranties
Assignment
Governing Law and Disputes Resolution
Miscellaneous Provisions