By Newscript News Network
August 20, 2025
In a significant policy reversal, the Ministry of Power has scrapped the central renewable energy pricing pools established in February 2024. The pools, designed to aggregate tariffs for solar and hybrid projects, were intended to simplify procurement. Instead, developers complained they slowed contract closures.
By dismantling the centralised mechanism, the government is giving developers and buyers more freedom to negotiate bilateral power purchase agreements (PPAs). “This will allow deals to be structured faster and on more competitive terms,” said an official from the Solar Developers Association.
For developers, the policy shift reduces administrative bottlenecks that often delayed projects by months. Analysts believe the move could unlock faster capacity addition, particularly in wind-solar hybrids where timelines are crucial to meeting India’s 500 GW non-fossil target by 2030.
The scrapping also reflects India’s maturing renewable market, where price discovery has stabilised and buyers are confident negotiating directly. “This step mirrors global practice—central pools can make sense for early-stage markets, but India is now at scale,” noted an energy economist.
Industry insiders expect the decision to boost liquidity in the short-term PPA market and create new opportunities for corporate buyers pursuing ESG-linked power sourcing.