The Haryana Electricity Regulatory Commission (HERC) has upheld Haryana Vidyut Prasaran Nigam’s (HPVNL) order canceling final transmission connectivity for a 50 MW solar power project for failing to prove its captive status.

For a solar project to be considered a captive project, the power offtakers must own at least a 26% shareholding and consume at least 51% of the power generated from the captive project. The offtakers must maintain these requirements throughout the operational period to maintain their captive status.

Background

The petitioner, Avaada Green HN Project, set up a 50 MW solar power project in Adampur, Hisar, on August 23, 2018.

The petitioner applied for the grant of long-term open access for the solar project, seeking connectivity at the 132 kV Adampur Substation. The power generated from the solar power project was intended to be sold through open access in captive or group captive mode.

On May 6, 2019, HPVNL granted in-principle feasibility for connectivity to the petitioner.

After not receiving final connectivity for a year, Avaada Green approached HPVNL for the grant of final connectivity.

It also expressed its willingness to sell power from the solar power project, along with 10% battery energy storage solutions, to the Haryana Power Purchase Centre (HPPC)/state distribution companies (DISCOM) under a cost-plus tariff mechanism.

HPVNL granted final connectivity to the petitioner, provided it sold the power to the DISCOMs. However, HPPC rejected the petitioner’s offer to sell power to the DISCOMs.

After failing to sign an agreement with HPPC for the power sale, the petitioner requested that HPVNL consider granting final connectivity for the project.

HPVNL canceled the petitioner’s final connectivity for the project, and the in-principle feasibility granted will remain in force.

It directed the petitioner to submit the required documents to prove the captive status of the project to Dakshin Haryana Bijli Vitran Nigam (DHBVNL), failing which the in-principle grant of approval for connectivity would be canceled.

The petitioner contended that the captive status of a project is verified at the end of the financial year or the commissioning stage. It argued that DHBVNL was seeking proof of the captive status without providing final connectivity.

On March 5, 2025, HPVNL issued a letter stating that the petitioner’s application for final connectivity and in-principle feasibility had been cancelled.

The petitioner approached HERC seeking clarification on this matter.

Commission’s Analysis

The Commission stated that HERC’s procedure for granting connectivity was mandatory and binding.

It added that the petitioner applied for final connectivity under the state’s solar policy and HAREDA guidelines. It said the DISCOMs’ insistence on meeting a 26% shareholding of captive consumers falls under these guidelines.

If a developer that has applied for permissions to set up a project under the captive category does not identify captive users and accordingly does not structure its shareholding pattern at the outset, such a project would not qualify for a captive status.

The regulator noted that the petitioner had sought final connectivity after a lapse of more than two years, blocking transmission connectivity for other solar developers.

It rejected the petitioner’s request to restore in-principle feasibility and final connectivity.

In March 2025, HERC issued amendments to the Green Energy Open Access Regulations, which were released in 2023. The amendments were finalized after a recent public hearing.

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