Gujarat High Court Stays 30 Pc Cap on Renewable Energy Banking

Ahmedabad, Gujarat – Gujarat High Court has granted an interim stay on the order of maximum 30 percent banking facility in the energy banking rules issued by Gujarat Energy Development Corporation on August 31, 2024.

An order was issued by Gujarat Energy Development Corporation to provide a maximum 30 percent banking facility out of the total consumption of the customer in energy banking in the renewable energy sector from August 31, 2024. All the industrialists were of the opinion that this order of Gujarat Energy Development Corporation was against the provisions of Rule 8 of the Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022 issued by the Central Government.

Due to this order, many industrialists, especially investors, were in financial difficulty. Due to this order, any industrial customer who has made a payment under the Green Energy Open Access Rules, 2022, Renewable energy projects registered and established before 31st August 2024 were facing huge financial difficulties, hence various organizations including The Southern Gujarat Chamber of Commerce and Industry had made representations to the State Government several times in this regard.

An industrial customer named Vishal Foundry had appealed to the Gujarat High Court under Special Civil Application No. 6730 of 2025. In connection with the appeal, the  Gujarat High Court, as per the oral order, has granted an interim stay till 30th September 2025 on the Energy Banking Rules issued by the Gujarat Energy Development Corporation vide letter No. GUVNL/0079/08/2024 dated 31st August 2024.

In the above order, the Gujarat High Court has granted a stay on the Energy Banking Rules of the Gujarat Energy Development Corporation. The Gujarat High Court has specifically mentioned in its order that the order of Gujarat Energy Development Corporation dated August 31, 2024 is against the provisions of Rule No. 8 of the Green Energy Open Access Rules 2025 issued by the Central Government.

The  order issued by the Gujarat High Court will benefit all the industrialists of Gujarat who have registered or started their projects before 31st August 2024. At present, this stay is interim, the further hearing of which will be held on September 30, 2025.