The Ministry of Power has withdrawn the uniform renewable energy tariff (URET) mechanism and dissolved the solar power central pool and solar wind hybrid central pool.
It cited challenges in power sale agreement (PSA) signings because of tariff uncertainties. The URET mechanism was introduced in February 2024 for a period of three years and was intended to stabilise tariffs for renewable energy buyers amid falling bid-discovered prices. However, renewable energy implementing agencies and developers raised concerns about procurer reluctance due to price variability over the mechanism’s duration. The bids received and letters of award issued under the scheme will remain valid on a standalone basis and may proceed for PSA or power purchase agreement execution. Renewable energy implementing agencies have been directed to move forward with bilateral agreements outside the pool mechanism.