India proposes to move to the global practice of selling entire power generation through the spot market. This proposal has been made to lower tariffs, promote efficient plants and withstand periodical aberrations which will benefit a few plants.
India proposes to move to the global practice of selling entire power generation through the spot market. This proposal has been made to lower tariffs, promote efficient plants and withstand periodical aberrations which will benefit a few plants. It is also expected to ensure that power plants with low taxes do not get into ‘stressed assets‘ category in future.
According to Director General of Association of Power Producers, Ashok Khurana, the operational and settlement issues have to be looked into for implementation. The proposal has been put up by the sector regulator and followed in Europe.
According to the Central Electricity Regulatory Commission (CERC), this mechanism could have resulted in savings of nearly Rs 6,000 crore to distribution companies of five states last year. It is expected to result in higher savings if appropriately implemented in Pan- India.
Consultations on the proposal on market-based economic dispatch of electricity have begun by CERC. It proposes to pool all the electricity generated in the country.
Of the pooled capacity, commercial power stations will get to sell their produce ensuring their optimum utilisation.