Wind energy generators entitled to terminate EPA and migrate to EWA upon discom payment defaults, as per prior binding precedents.

ORDER :

M. Dhandapani, J.

According to the petitioners, the petitioners have installed windmills within the jurisdiction of the 4^th respondent. Under an Energy Purchase Agreement (in short ‘EPA’), dated 01.09.2025 and 01.12.2024 the energy generated by the petitioners’ windmills has been sold to respondent/TNPDCL. As per the agreement, the amounts for the energy sold should be paid within 60 days from the date of receipt invoices, failing which, the respondent is liable to pay interest at 1% per month. As there was delay in payment of the amounts and the delayed payments were made without any interest by the respondent/TNPDCL raised under invoices by petitioners, the petitioners opted for supplying their wind energy to other consumers within the State of Tamil Nadu under the Open Access Scheme as per the terms of the agreement executed between them and TANGEDCO.

3. In the circumstances, the TNPDCL, having received representations from various Wind Energy Generators requesting them to terminate the EPA and to allow migration from sale of power to ‘TANGEDCO’ to their captive/third party use, issued Board proceedings No.44, dated 01.08.2023 not permitting petitioners’ migration (utility change) from Sale to Board to captive scheme.

4. As the petitioners have right to supply its power to other consumers under Open Access Scheme either under own captive/group captive or under 3^rd party sale, on payment of necessary charges, the petitioners on 25.10.2025, 06.02.2026 and 15.02.2025 have made applications to the 2^nd respondent to convert EPA into EWA . However the petitioners’ request to the 2^nd respondent has been kept pending till date without any action.

5. Left with no other alternative, the petitioners have filed the aforesaid writ petitions seeking for quashing the impugned proceedings issued by the TNPDCL and for consequential direction directing the respondents 2 to 4 allowing termination of existing EPA and to execute fresh EWA under group captive/3rd party sale schemes and further direction to make payment of outstanding dues till the date of termination of EPA along with interest at 1% per month.

6. Heard the learned counsel appearing for the petitioners and the learned counsel appearing for the respondents.

7. The learned counsel appearing for the petitioner would submit that both the writ petitioners have entered into Power Purchase Agreement with the respondent/TNPDCL, however, as per the Power Purchase Agreement, the respondents have cleared the bill within the time as specified in the Agreement. As the respondent/TNPDCl defaulted in payment of the power purchase from the petitioners, thereby, the petitioners have made applications to the respondent/TNPDCL allowing them to terminate the existing Energy Purchase and convert it to fresh Energy Wheeling Agreement under group captive/3rd party sale schemes, however, the same was rejected by the respondent/TNPDCL vide its impugned proceedings No.44, dated 01.08.2023 not permitting migration (utility change) from Sale to Board to captive scheme. Challenging the same, the present writ petition is filed.

8. Learned counsel appearing for the petitioners further submitted that the similar issue challenging the impugned proceedings was elaborately dealt with by this Court in W.P.No.9591 and 9597 of 2026 , wherein the impugned proceedings were ordered to be quashed Accordingly, he prayed for passing similar order in this writ petition also.

9. Per contra, the learned counsel for the respondents would submit that the petitioners herein are bound by the Energy Purchase Agreement. Unless the petitioners establish before this Court that there was a default in payment of arrears to the petitioners, then only, they are entitled for converting Energy Purchase