Archive · 28 Jun 2025
India to Push Uniform Renewable Energy Tariffs
The Indian government is working on a new plan to make electricity from renewable sources like solar power cheaper and easier to buy.
They want to set a standard price (tariff) for this electricity, so everyone pays the same amount.
However, some local electricity companies (discoms) are worried about this new system.
They have concerns about how the prices will be set and if it will cost them more money in the long run.
The government will talk to these companies to figure out a solution.
The goal is to speed up the process of buying clean energy and help India reach its goal of using lots more renewable energy in the future.
The Indian government plans to implement uniform tariffs for renewable energy to boost clean power adoption.
Stakeholder consultations are planned to address discoms' reservations regarding the uniform renewable energy tariffs (URETs).
Significant delays in signing power purchase agreements (PPAs) between developers and discoms have hindered clean power procurement.
The URET mechanism will involve a pooled tariff set by Grid Corporation of India Ltd, revised based on auction tariffs.
The initiative supports India's goal of achieving 500GW of non-fossil-based energy capacity by 2030.
- Who
- The central government, renewable energy developers, discoms, and Grid Corporation of India Ltd.
- What
- The central government is planning to implement uniform tariffs for renewable energy to boost clean power adoption.
- When
- The government will hold talks soon.
- Where
- India
- Why
- To address delays in clean power procurement and help meet renewable energy targets.
Discom Concerns
Government's Goals
Cost Impact
Discom Concerns
The uniform tariff could increase costs for discoms, especially if new project tariffs are higher.
Government's Goals
The uniform tariff is intended to streamline procurement and encourage the signing of PPAs.
- Proposed Initiative
- Uniform Renewable Energy Tariffs (URETs)
- Implementation Agency
- Grid Corporation of India Ltd
- Unsigned PPAs
- Approximately 30 GW worth
- India's Renewable Energy Capacity
- 271.5 GW (including large hydro)
- Solar Power Capacity
- 110.9 GW
- Goal
- 500GW non-fossil-based energy capacity by 2030