Union Power Minister R K Singh has launched a portal to ensure larger availability of power through the peak demand season at a worth larger than the ceiling of Rs 12 per unit by sure class of sellers.
The central authorities has launched a High Price Day Ahead Market (HP-DAM) and Surplus Power Portal (PUShP), a power ministry assertion mentioned.
Earlier in February, power regulator CERC had authorized the HP-DAM section the place power might be bought at a worth as excessive as Rs 50 per unit.
HP-DAM will assist stranded gasoline and imported coal-based power vegetation to generate and promote costly power to meet the excessive peak demand in summers which is predicted to contact 239 GW this season.
Besides, the brand new section will even ensure availability of electrical energy by means of an costly battery vitality storage system.
The Union Minister mentioned that solely these producing capacities which have a value of producing power of greater than Rs 12 per unit can be allowed to function in HP-DAM.
If the fee of manufacturing is lower than Rs 12, the mills could have to provide power within the Power Exchange’s Integrated Day Ahead Market (I-DAM) solely with a ceiling worth of Rs 12, he said.
He requested the Central Electricity Authority and the Grid Controller to ensure that costs are cheap within the HP-DAM and take obligatory motion to ensure that no Power Producers cost exorbitant costs, that are way more than the fee of manufacturing.
Singh launched the portal at a digital perform in New Delhi on Thursday in presence of over 200 stakeholders from state governments and the power sector, the ministry mentioned.
Last yr the Ministry of Power, after taking notice of the truth that on some days the costs within the electrical energy change had gone up to Rs 20, had given instructions to the CERC to put a worth cap of Rs 12 on the change, in order that there is no such thing as a profiteering, it defined.
The cap was imposed from April 1, 2022 in Day Ahead Market & Real Time Market, and additional in all segments from May 6, 2022.
This transfer rationalized the worth for consumers. Because of the excessive costs of gasoline within the worldwide market; the electrical energy made by utilizing gasoline was costly — greater than Rs 12 per unit — and this capability couldn’t be bought in the marketplace.
Similarly, the imported coal-based vegetation and the Renewable Energy saved in battery-energy storage methods couldn’t be introduced into operation, as their era value was excessive, it defined.
Singh, mentioned within the assertion that the HP-DAM was half of the general technique to ensure that every one accessible power capability is utilized for provide to shoppers.
Krishan Pal Gurjar, Minister of State of Power and Heavy Industries expressed confidence that the brand new mechanism will ensure satisfactory availability of power.
Power Secretary Alok Kumar, whereas citing many advantages of the brand new market mechanism, clarified that as in opposition to some experiences, Rs 50 per unit was solely a technical cap and the market forces would ensure a a lot decrease fee.
The surplus power portal is a one-of-its-kind initiative, reflecting the ingenuity of the Ministry of Power and the Regulator. Distribution Companies have tied up long-term PPAs for power provide.
They have to pay fastened expenses even when they don’t schedule the power. Now the DISCOMs will probably be in a position to point out their surplus power in block instances/days/months on the portal. Those DISCOMs who want power will probably be in a position to requisition the excess power.
The new purchaser can pay each variable cost (VC) and glued value (FC) as decided by Regulators. Once power is reassigned, the unique beneficiary shall don’t have any proper to recall as whole FC legal responsibility can be shifted to the brand new beneficiary.
(Only the headline and movie of this report could have been reworked by the Business Standard employees; the remaining of the content material is auto-generated from a syndicated feed.)
Leave a Reply