Government Delays Rollout of Uniform Renewable Energy Tariff (URET) as Impact Assessment Lags

In a recent announcement, the Union Minister for New & Renewable Energy and Power, Shri R. K. Singh, revealed that although the procedure for implementing the Uniform Renewable Energy Tariff (URET) was issued by the Ministry of Power on October 25, 2023, the actual execution is yet to commence. Consequently, the government has refrained from conducting any assessment regarding the potential impact on cost escalation resulting from the implementation of URET.

The intermediary procurer, functioning as a trader, follows the tariff-based competitive bidding (TBCB) guidelines to acquire renewable energy (RE) power from RE Power Generators. Subsequently, the intermediary procurer sells this acquired power to one or more distribution licensees, who, in turn, supply electricity to consumers within their designated regions and uphold public service obligations. Notably, the intermediary procurer itself does not bear direct public service obligations.

The tariff at which power is procured by distribution licensees for consumer supply is determined through a competitive bidding process and is subsequently adopted by the respective electricity regulatory commission, as mandated by Section 63 of the Electricity Act.

Shri R. K. Singh provided this information in a written reply to a question posed in the Rajya Sabha, emphasizing the current delay in implementing URET and the absence of a conducted impact assessment on potential cost escalations. The government’s stance on this matter raises questions about the timeline for the enforcement of URET and its broader implications for the renewable energy sector.