The Maharashtra Electricity Regulatory Commission (MERC) has granted in-principle approval for reviewing the Scheduled Commencement of Supply Dates (SCSDs) of solar projects being developed by Avaada Energy Private Limited and three of its subsidiaries. The order was issued on October 1, 2026, following a joint petition filed by Avaada Green Sustainable Energy, Avaada MH Renewable 1, and Avaada Sunenergy.

The developers have entered into Power Purchase Agreements (PPAs) with the Maharashtra State Electricity Distribution Company Limited (MSEDCL) for supplying around 2 GW of combined solar and wind power. The original SCSDs for the projects were scheduled between 2025 and 2027.

However, transmission system strengthening and network augmentation works being undertaken by the Maharashtra State Electricity Transmission Company Limited (MSETCL) are expected to be completed between FY 2027–28 and FY 2028–29. According to the petitioners, the delays have affected the evacuation of power from their projects, resulting in expected delays of around five to 19 months for different solar components.

The developers argued that they could not commence scheduled power supply without adequate transmission infrastructure and could potentially face contractual penalties despite the delays being outside their control. During the proceedings, they clarified that an extension was not being sought for their wind power assets, as the evacuation constraints were limited to the solar projects.

MSETCL submitted that the grid connectivity approvals had been granted subject to the completion of necessary network augmentation works. It also stated that the developers had agreed not to claim generation losses arising from the transmission constraints.

MSEDCL expressed no objection in principle to revising the supply schedules, provided that it was protected from any financial, regulatory, or contractual losses resulting from delays in MSETCL’s transmission works. The distribution company also raised concerns that the developers had not issued Force Majeure notices within the timelines specified under their PPAs.

The developers, meanwhile, assured MERC that they would not seek tariff escalation, Interest During Construction, or other additional financial benefits as a result of the proposed timeline extension.

MERC observed that the projects were awarded through competitive bidding under Section 63 of the Electricity Act, 2003. Therefore, the Commission said that contractual provisions contained in the PPAs should govern any adjustment to the project timelines rather than general regulatory powers. It further noted that delays in transmission infrastructure beyond the developers’ control could fall within the Force Majeure provisions of the PPAs.

The Commission has directed the petitioners to submit a comprehensive representation to MSEDCL within 15 days, seeking revision of the SCSDs for the affected solar projects. MSEDCL, in consultation with MSETCL, must examine the representation and issue a reasoned decision within 30 days.

MERC has also directed MSETCL to expedite the pending transmission works and explore interim arrangements, including off-peak wind power evacuation, wherever existing grid capacity permits. If the matter remains unresolved after MSEDCL’s decision, the developers have been given liberty to approach MERC again for further adjudication.