The Himachal Pradesh High Court has set aside an order of the state’s Directorate of Energy that had rejected Greenko Astha Projects’ application for accreditation under the Renewable Energy Certificate (REC) mechanism. The court observed that the state agency had overstepped its authority and ignored the procedure prescribed by the Central Electricity Regulatory Commission (CERC).
Background
The case arose from Greenko Astha Projects (India) Hydro Power Pvt. Ltd.’s 5 MW Dehar Hydroelectric Project in Chamba district, which began operations in 2004. After the CERC introduced the REC framework in 2010 to encourage renewable power generation, Greenko applied for accreditation in October 2019. However, the Directorate of Energy rejected the application a month later, citing a 2004 power purchase agreement (PPA) with the Himachal Pradesh State Electricity Board (HPSEB).
The Directorate argued that because the company sold power to HPSEB at a fixed rate of ₹2.50 per unit for 40 years and not at the “Average Pooled Power Cost (APPC)” rate it was ineligible for REC benefits.
Aggrieved, Greenko approached the High Court, claiming that the state agency had no jurisdiction to decide eligibility, which lay solely with the CERC’s designated “Central Agency.”
Court’s Observations
Hearing the matter, Justice Ajay Mohan Goel noted that the REC framework clearly divides responsibilities between the Central and State agencies. The state’s role, the judge said, was limited to preliminary scrutiny and forwarding of applications.
“The State Agency has to process the application strictly in terms of the procedure prescribed,” the court observed. “However, the final decision on whether the certificate should be granted lies with the Central Agency, not the State.”
The bench pointed out that Regulation 5 of the 2010 CERC Regulations which the Directorate had relied on deals with eligibility and registration for REC issuance, both of which fall within the Central Agency’s purview. “This extremely important aspect of the matter has been ignored by the respondent,” Justice Goel remarked.
The court also cited the 2018 procedural guidelines, which require state agencies to conduct only a seven-day preliminary check for document completeness, not to pass judgment on eligibility.
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Decision
Finding the Directorate’s reasoning legally unsustainable, the High Court quashed the order dated November 11, 2019. It directed the Directorate of Energy to reconsider Greenko’s accreditation application strictly in accordance with law and the process laid down by the CERC.
“The impugned order is not sustainable in the eyes of law,” the bench ruled, instructing the state agency to forward Greenko’s application to the appropriate Central authority for final decision within the prescribed framework.
With this, the writ petition was allowed and all pending miscellaneous applications were disposed of.
Case Title: M/s Greenko Astha Projects (India) Hydro Power Pvt. Ltd. vs. Directorate of Energy, State of Himachal Pradesh
Court: High Court of Himachal Pradesh, Shimla
Bench: Hon’ble Justice Ajay Mohan Goel
Case No.: CWP No. 5752 of 2020
Petitioner: M/s Greenko Astha Projects (India) Hydro Power Pvt. Ltd.
Respondent: Directorate of Energy, State Agency, Himachal Pradesh
Date of Decision: October 9, 2025
