The Ministry of Power (MoP) has revoked the uniform renewable energy tariff (URET) mechanism. The move comes in response to concerns of renewable energy implementing agencies and developers over the reluctance of procurers to sign power purchase agreements (PPA), along with challenges in power sale agreement (PSA) signings because of tariff uncertainties.
The decision also includes the dissolution of the solar power central pool and the solar-wind hybrid central pool. The URET mechanism was introduced in February 2024 for a period of three years till 2027 and was intended to stabilise tariffs for renewable energy buyers amid falling bid-discovered prices.
The bids received and letters of award issued under the scheme will remain valid on a standalone basis and may proceed for PSA or PPA execution. Renewable energy implementing agencies have been directed to move forward with bilateral agreements outside the pool mechanism.
