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Centre launches portal for better availability of power in peak demand season

Updated: Mar 10, 2023 05:29:06pm
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Centre launches portal for better availability of power in peak demand season

New Delhi, Mar 10 (KNN) The Central Government on Thursday announced the launch of a High Price Day Ahead Market and Surplus Power Portal (PUShP) to ensure greater availability of power during the peak demand season.

Union Power & NRE Minister R.K. Singh launched the portal at a virtual function in New Delhi in presence of over 200 stakeholders from state governments and the power sector.   

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This year it is expected that the demand will be much higher than last year therefore, the gas-based plants and the imported coal-based plants will need to be scheduled – and that is why a separate segment has been carved out for those generation systems where the cost of generating power – from gas / imported coal / RE plus storage – may cross Rs 12. This separate segment is called HP DAM.

Speaking on the occasion, Union Power Minister R.K. Singh, said that the HP—DAM was part of the overall strategy to ensure that all available power capacity is utilized for supply the power to consumers. Explaining the operation of the HP-DAM, he said that nobody would be allowed to charge exorbitant rates.

The Union Minister said that only those generating capacities which have cost of producing power of more than Rs 12 per unit would be allowed to operate in HP-DAM.  

If the cost of production is less than Rs12, the generators will have to offer power in the Power Exchange’s Integrated Day Ahead Market (I-DAM) only with a ceiling price of Rs12.

He asked CEA and Grid Controller to ensure that prices are reasonable in the HP-DAM and take necessary action to ensure that no Power Producers charges exorbitant prices, which are much than the cost of production.

The Minister added that India was a very stable power market as against the case in some developed countries where a situation of power tariff much higher than the cost of production was seen last year.

Speaking on the occasion Krishan Pal Gurjar, Minister of State of Power and Heavy Industries expressed confidence that the new mechanism will ensure adequate availability of power.

Alok Kumar, Secretary, while citing many benefits of the new market mechanism, clarified that as against some reports, Rs 50/- unit was only a technical cap and the market forces would ensure a much lower rate.

Distribution Companies have tied up long term PPAs for power supply. They have to pay fixed charges even when they do not schedule the power. 

Now the DISCOMs will be able to indicate their surplus power in block times / days / months on portal. Those DISCOMs who need power will be able to requisition the surplus power.  

The new buyer will pay both variable charge (VC) and fixed cost (FC) as determined by Regulators. Once power is reassigned, the original beneficiary shall have no right to recall as entire FC liability is also shifted to the new beneficiary.

Financial liability of new buyer shall be limited to quantum of temporary allocated / transferred power. 

This will reduce the fixed cost burden on the DISCOMs, and will also enable all the available generation capacity to be utilized.  (KNN Bureau)

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