In an important ruling, the Gujarat Electricity Regulatory Commission (GERC) has held that project delays arising from right-of-way (RoW) issues can, in certain circumstances, qualify as force majeure — events beyond the reasonable control of a project developer. The implication is that a developer may be granted an extension of project timelines without attracting delay penalties.

Hearing a dispute between renewable energy developer Juniper Green and state-owned power utility Gujarat Urja Vikas Nigam Ltd (GUVNL) over delays in the commissioning of a 50 MW wind project, GERC accepted Juniper’s plea for relief, though for fewer days than the company had sought.

Juniper had claimed force majeure protection on eight grounds, including RoW-related difficulties. The Commission rejected the other seven claims.

The renewable energy industry, particularly the wind sector, has long complained that RoW issues have evolved beyond demands for fair compensation by landowners, mostly farmers, to what developers describe as extortion backed by local power brokers. Such disputes frequently escalate into law-and-order problems. The Juniper Green case illustrates the challenge. The situation became serious enough for the company to seek police protection.

GERC observed that the company “could not proceed smoothly without police protection for approaching the project site” and noted that this “cannot be equated with an ordinary commercial dispute or routine land-related difficulty that a developer is expected to manage.”

At the same time, the Commission stressed that not every local objection would constitute force majeure. Developers are expected to plan for land acquisition, access and logistics issues. “However, where access to the project site or execution of works is obstructed due to local resistance, and the developer is compelled to seek police protection, the matter assumes a different character,” GERC said.

The Commission also cited an earlier case involving Shivman Renewable Energy Pvt Ltd, where similar relief was granted for delays caused by local resistance and RoW difficulties.

The ruling could have significant implications for renewable energy projects. Developers facing unreasonable resistance may be able to seek police intervention and subsequently rely on such evidence to support claims for extensions of project schedules and relief from delay penalties.

The issue is particularly relevant for India’s wind sector, which installed a record 6.05 GW of new capacity in 2025-26. Industry leaders expect the momentum to continue. Girish Tanti, Chairman of the Indian Wind Turbine Manufacturers Association (IWTMA), has said annual installations could exceed 8 GW this year.

India currently has 56.8 GW of installed wind power capacity and aims to reach 100 GW by 2030. Union Minister for New and Renewable Energy Pralhad Joshi has expressed the ambition of achieving the milestone even earlier.

But right-of-way issues continue to stand in the way.

Published on June 23, 2026