- India has scrapped its central pricing system for renewable energy projects after developers raised concerns.
- India has a large pipeline of renewable energy projects waiting for power sale agreements, and to avoid further delays, the ministry said it was withdrawing the order.
India has scrapped its central pricing system for renewable energy projects after developers raised concerns that it was delaying power deals, according to a government memo.
The Ministry of Power said it was dissolving the solar power central pool and the solar-wind hybrid central pool, set up in February 2024 to standardise tariffs for clean energy projects over a three-year period, the memo dated August 1 said.
The pools were part of a uniform renewable energy tariff (URET) mechanism aimed at protecting buyers from fluctuating prices.
However, developers and government renewable agencies raised concerns that the buyers were hesitant to sign contracts due to uncertainty over future tariffs for three years, the memo said.
India has a large pipeline of renewable energy projects waiting for power sale agreements, and to avoid further delays, the ministry said it was withdrawing the order.
India’s stranded renewable power capacity projects were awarded, but were unable to come online. This number has more than doubled over nine months due to unfinished transmission lines and legal and regulatory delays.
While the pools will no longer exist, the government said bids already received and letters of award issued under the scheme will remain valid.