MoP Dissolves URET Central Pools to Fast-Track Renewable Projects

In a major move aimed at speeding up renewable energy adoption, the Ministry of Power has officially withdrawn its earlier order on the Uniform Renewable Energy Tariff (URET) mechanism, effectively dissolving the ‘Solar Power Central Pool’ and ‘Solar-Wind Hybrid Central Pool’.

The decision comes in response to mounting concerns from Renewable Energy Implementing Agencies (REIAs) and developers over the lack of clarity and tariff risks under the three-year URET framework. Introduced via an Office Memorandum on February 14, 2024, the pools were designed to stabilise tariffs amid falling bid-discovered prices and were set to run until February 14, 2027.

However, the mechanism saw limited traction. Many procurers were reportedly reluctant to sign Power Sale Agreements (PSAs) due to uncertainties in tariff determination over the fixed period.

As per the document, in view of the substantial renewable energy capacity awaiting PSA signings, this step is aimed at clearing bottlenecks and expediting the deployment of RE projects.

While the central pooling mechanism stands scrapped, bids already received and Letters of Award (LoAs) issued will remain valid. REIAs have been allowed to proceed with standalone execution of Power Purchase Agreements (PPAs) and PSAs with developers and procurers for these bids.