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APTEL Rejects Jindal Aluminium’s Compensation Claim for Pre-Agreement Wind Power Injection

The Appellate Tribunal for Electricity (APTEL) has upheld the Karnataka Electricity Regulatory Commission’s (KERC) ruling denying Jindal Aluminium compensation for injecting power into the grid between October 4 and November 17, 2015, prior to signing a wheeling and banking agreement. Jindal had commissioned 12 MW of wind capacity on October 3, 2015, and began power injection the next day—before finalizing an agreement with multiple distribution companies, which was only signed on November 18, 2015.

Jindal claimed compensation under Section 70 of the Indian Contract Act, 1872, stating that the energy was lawfully delivered and accepted without objection. However, the respondents argued—and APTEL agreed—that the power was neither consumed by the DISCOMs nor used for Renewable Purchase Obligations (RPOs), and hence no benefit was derived, a key requirement under Section 70.

APTEL compared this case to earlier rulings such as Green Energy Association and Greenko Maha Wind, where compensation was awarded due to clear benefit and bureaucratic delays. In Jindal’s case, however, the Tribunal emphasized a prior provisional interconnection letter that warned against injecting power without an agreement.

As Jindal knowingly proceeded without meeting contractual prerequisites, APTEL concluded the company was not entitled to any compensation for the energy injected during the pre-agreement period.