(Reuters) -India has scrapped a central pricing system for renewable energy projects after developers raised concerns that it was slowing down power deals, as per a memo seen by Reuters.
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 awarded but unable to come online – more than doubled over nine months, due to unfinished transmission lines, and legal and regulatory delays, Reuters reported last week.
While the pools will no longer exist, the government said bids already received and letters of award issued under the scheme will remain valid.
(Reporting by Sethuraman NR and Sudarshan Varadhan; Editing by Janane Venkatraman)
