India Ends Central Pricing Scheme for Renewables to Accelerate Power Deals

India’s Ministry of Power has decided to scrap the central pricing pools for renewable energy projects, including the solar and solar-wind hybrid pools introduced in February 2024. These pools aimed to standardize tariffs over a three-year period under the uniform renewable energy tariff (URET) mechanism, but developers raised concerns that uncertainty over future pricing was delaying contract signings and project implementation. With a growing pipeline of renewable projects awaiting power sale agreements and stranded capacity rising due to transmission and regulatory hurdles, the government opted to withdraw the scheme to prevent further delays. Existing bids and awards issued under the scheme will remain valid, but new projects will no longer follow the standardized pricing model, allowing for faster negotiations and implementation.