In Short : The implementation of a Uniform Renewable Energy Tariff suggests the adoption of a standardized pricing structure for renewable energy across a specific region or jurisdiction. This uniform tariff system aims to streamline and simplify pricing mechanisms for various renewable energy sources, making it more consistent and predictable for producers, consumers, and investors. This approach can contribute to the promotion of renewable energy adoption by providing a clear and stable economic framework for renewable energy projects.
In Detail : The Union Minister for New & Renewable Energy and Power has informed that the procedure for implementation of Uniform Renewable Energy Tariff (URET) was issued by Ministry of Power on 25.10.2023, however, the actual implementation of URET is yet to be initiated and hence Government has not conducted any assessment regarding the impact on cost escalation resulting from the implementation of a Uniform Renewable Energy Tariff.
The intermediary procurer is a trader, buying RE power from the RE Power Generators as per the tariff based competitive bidding (TBCB) guidelines and selling the same to one or more distribution licensees, who in turn supply power to consumers in their area of jurisdiction and have public service obligation. Therefore, the intermediary procurer does not have any direct public service obligation.
The discovered tariff at which power is procured by distribution licensees to supply to the consumers is adopted by respective electricity regulatory commission, under Sec. 63 of the Electricity Act.
This information has been given by the Union Minister for New & Renewable Energy and Power Shri R. K. Singh, in a written reply to a question, in Rajya Sabha today, December 12, 2023.
