The Ministry of Power has decided to withdraw the Uniform Renewable Energy Tariff (URET) mechanism and dissolve the associated ‘Solar Power Central Pool’ and ‘Solar-Wind Hybrid Central Pool’ with immediate effect. This decision was made in response to concerns from Renewable Energy Implementing Agencies (REIAs) and developers regarding the reluctance of procurers to sign Power Sale Agreements (PSAs) due to tariff uncertainties over a three-year period. This Office Memorandum was issued on August 1, 2025.
The URET mechanism was initially implemented on February 15, 2024, for a duration of three years, in compliance with the Electricity (Amendment) Rules, 2022, to address the impact of declining bid prices on procurers.
However, to expedite the deployment of renewable energy and address the substantial capacity of projects awaiting PSA signing, the Ministry has decided to dissolve the central pools. The dissolution of these pools means that bids received and Letters of Award issued under the URET mechanism will now be considered valid on a standalone basis.
As a result, REIAs may now proceed to execute Power Purchase Agreements (PPAs) and PSAs with procurers and developers for these bids. This move is intended to remove the tariff uncertainty that was hindering the process and to accelerate the deployment of renewable energy projects across the country.