**Executive Summary**
This Office Memorandum, issued by the Ministry of Power on August 1, 2025, announces the dissolution of the 'Solar Power Central Pool' and 'Solar-Wind Hybrid Central Pool' with effect from 15.02.2024. This decision reverses the implementation of the Uniform Renewable Energy Tariff (URET) mechanism initiated through OM No. 13/05/2023-RCM/NRE dated 14.02.2024. Despite the dissolution, bids received and Letters of Award issued under the pools remain valid for standalone basis.
**Key Points / Main Content**
* **Dissolution of Central Pools:**
* The 'Solar Power Central Pool' and 'Solar-Wind Hybrid Central Pool' are dissolved, effective 15.02.2024.
* This reverses the implementation of the URET mechanism initiated on 14.02.2024.
* **Rationale:**
* The URET mechanism was initially intended to address the impact on procurers due to declining bid prices.
* REIAs and RE developers raised concerns about the reluctance of procurers to sign PSAs under URET due to tariff uncertainty.
* The dissolution aims to expedite RE deployment, given the substantial renewable energy capacity awaiting PSA signing.
* **Validity of Bids and Awards:**
* Bids received and Letters of Award issued under the dissolved pools remain valid on a standalone basis.
* REIAs may proceed to execute PSAs/PPAs with procurers/developers for these bids.
**Impact Analysis**
**Renewable Energy Implementing Agencies (REIAs) and RE Developers**
* **Impact:** Can now execute PSAs/PPAs with procurers/developers based on existing bids and Letters of Award on a standalone basis without the URET mechanism.
* **Action Required:** Proceed with PSA/PPA execution.
**Procurers (likely State/UT Governments)**
* **Impact:** No longer subject to the URET mechanism for projects under the now-dissolved central pools. Potential impact on tariff negotiations for future projects.
* **Action Required:** Review existing bids and Letters of Award for projects under the dissolved pools and proceed with PSA/PPA negotiations on a standalone basis.
**Ministry of New & Renewable Energy and CMD, Grid-India Limited**
* **Impact:** Awareness of the policy change.
* **Action Required:** Note the policy change.
Key Entities Referenced
Uniform Renewable Energy Tariff (URET) Mechanism: Mechanism for uniform renewable energy tariff, specifically concerning the dissolution of 'Solar Power Central Pool' and 'Solar-Wind Hybrid Central Pool'.
Ministry of Power: The government ministry issuing the office memorandum related to the URET mechanism.
Electricity (Amendment) Rules, 2022: Amendment rules that prompted the Ministry of Power to implement the URET.
Solar Power Central Pool: One of the central pools related to solar power that is being dissolved under this memorandum.
Solar-Wind Hybrid Central Pool: One of the central pools related to solar and wind hybrid power that is being dissolved under this memorandum.
No. 1 3/05/2023-RCM/N RE
Government of lndia
MinistrY* o *f * P ower
shram shakti Bhawan, Rafi Marg,
New Delhi, 01tt August,2025
OFFICE MEMORANDUM
Subject: Uniform Renewable Energy Tariff (URET) Mechanism - dissolution of 'Solar
pow-er central Pool' and 'solar-wind Hybrid central Pool'- reg.
ln compliance to Electricity (Amendment) Rules, 2022, notified on 29th
December 2022, the Ministry of Power, through OM No. 1310512023-RCM/NRE dated
14.O2.2124regarding the implementation of the Uniform Renewable Energy Tariff
(URET), havelnformLd tfre commencement of 'Solar Power Central Pool' and 'Solar-
WlnO Hybrid Central Pool'with effect from 15.02.2024 for a duration of 3 years i.e up
to 14.02.2027.
Z. The URET mechanism and the associated Central Pools were notified to address
the potential impact on procurers in a context of declining bid-discovered
prices. However, Renewable Energy lmplementing Agencies (RElAs) and RE,
developers have expressed concerns over procurers reluctant to sign PSAs under
URET on account of uncertainty of tariffs over a 3 year period.
3. ln view of the substantial renewable energy capacity awaiting PSA signing and to
expedite the deployment of RE, it has been decided to withdraw the OM No.
IttOStZOzg-RCM/NiE dated 14.02.2025 regarding the implementation of the URET
mechanism and the commencement of 'Solar Power Central Pool' and 'Solar-Wind
Hybrid Central Pool' with effect from 15.02.2024. Consequently, the'Solar Power
Central pool' and'Solar-Wind Hybrid Central Pool', shall stand dissolved. However, the
bids received and Letters of Awird issued there under shall remain valid on standalone
basis and may be considered for the signing of Power Purchase Agreements/PSAs.
The REIAg may proceed to execute the PSAs/PPAs with the Procurers / Developers for
bids.
these
f
Authority.
4. ffi
This issues with the approval of competent t n n
ffi'lorld
(SuniiKumar Sharma)
Director (NRE/RCM)
To
Secretary, Ministry of New & Renewable Energy
1.
ll. CMD, Grid-lndia Limited.iii.
CMD, NTPC Limited
iv.
CMD, NHPC Limited
v.
CMD, SJVN Limited
vi.
CMD, Solar Energy Corporation of lndia Limited
Copy to:
i.
Principal Secretaries/Secretaries (Power/Energy) of all State / UT Governments
ii.
secretary, central Electricity Regulatory commission (CERC), New Delhi
iii.
secretaries of All state Electricity Regulatory commissions/JERCS
iv.
Secretary, FOR.
v.
Chairman lndian Wind Power Association, New Delhi
vi.
Chairman, lndian Wind Turbine Manufacturers Association, New Delhi
vii.
Director General, National Solar Energy Federation of lndia (NSEFI), New Delhi.