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URET Explained: Uniform Renewable Energy Tariff Proposal

28 June 20251 min read
ECONOMYURET Explained:UniformRenewable EnergyTariff Proposal28 June 2025safalsetu.com

Why in the news

The Centre prepared to consult on URETs to speed up renewable power purchase agreements.

Key facts

  • Electricity is a concurrent subject, so states resist.
  • One pooled tariff replaces project or location-specific rates.
  • An agency such as Grid Corporation of India Ltd computes it from competitive bids.

Benefits

  • Pricing clarity helps generators, discoms and investors plan.
  • Ends discoms’ wait-and-watch habit of expecting lower tariffs, reducing PPA delays.

Exam angle

  • Terms: URET, PPA, discom.
  • Proposed: October 2023.

Test yourself

1. URET stands for what in the context of India's power sector?

URET is Uniform Renewable Energy Tariff.

2. Why has the URET mechanism proposed in October 2023 faced delay?

Electricity is a concurrent subject and states resisted.

3. Under URET, the pooled tariff is based on tariffs discovered through what?

It is computed from competitive bidding results.