State Energy Directorate Can't Reject Accreditation For Renewable Energy Certificates, Only Central Agency Has Authority: HP High Court

The Himachal Pradesh High Court has held that the Directorate of Energy does not have jurisdiction to reject an application for accreditation under the Renewable Energy certificate mechanism, as such decisions fall within the exclusive domain of the central agency designated by the Central Electricity Regulatory Commission.

Justice Ajay Mohan Goel remarked that: “Whether or not a generating company engaged in generation of electricity from renewable energy sources is eligible to apply for registration… has to be decided by the Central Agency and not by the State Agency.”

The petitioner, M/s Greenko Astha Projects (India) Hydro Power Pvt. Ltd., developed a hydroelectric project in the district Chamba. After a memorandum of understanding was executed between the State Government and the Himachal Pradesh State Electricity Board, the project became commercially operative in 2004.

In 2010, the Central Electricity Regulatory Commission introduced the terms and conditions for the issuance of a renewable energy certificate for Renewable Energy Generation Regulations, 2010, providing a framework for granting certificates to eligible renewable energy producers.

Thereafter, the petitioner applied for accreditation under the scheme before the State agency. However, the application was rejected by the Directorate of Energy on the grounds that the petitioner had an existing PPA, which made him ineligible under Clause 5(1)(c) of the 2010 Regulations.

The petitioner contended that the state authority did not have the authority to determine the eligibility and issue Renewable Energy Certificates as it lies with the Central Agency.

The petitioner further contended that as per Regulations 2, 3, and 5 of the 2010 CERC Regulations, the state agency's role was just procedural for verification of applications.

The Court remarked that the State Agency exceeded its jurisdiction in rejecting the accreditation request. It reiterated that the 2010 Regulations clearly assign the responsibility of determining eligibility and issuing RECs to the Central Agency, not the State Agency.

The Court remarked that “Certificate' means the renewable energy certificate issued by the Central Agency in accordance with the procedures laid down by it and under the provisions specified in said Regulations.”

Further, the Court held that the director had wrongly relied on Regulation 5(1) of the 2010 Regulations, as that provision talks about the central agency's role, not the State Agency.

Thus, the High Court set aside the order of the Directorate of Energy and directed them to reconsider the application of the petitioner in accordance with the accreditation procedure.

Case Name: M/s Greenko Astha Projects (India) Hydro Power Pvt. Limited v/s Directorate of Energy, State Agency, Himachal Pradesh

Case No.: CWP No. 5752 of 2020

Date of Decision: 09.10.2025

For the petitioner: Mr. Rajnish Maniktala, Senior Advocate, with Mr. Dinkar Bhaskar, Advocate

For the Respondent: Mr.Pushpinder Jaswal, Additional Advocate General, for respondent with Mr. Rajat Chauhan, Assistant Advocate General.

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