Govt alters power distribution framework

27 Apr 2023 , 08:44 AM

In order to make  power rates cheaper for customers, the power ministry has updated the Day-Ahead National level Merit Order Dispatch Mechanism, according to an official statement released on Wednesday. Power produced at a cheaper rate will be supplied first to consumers. 

Generating stations and their customers would split the benefits of the day-ahead national merit order dispatch mechanism.

Consumers of power will experience significant annual savings as a result. In April 2019, the current system for dispatching merit orders in real-time became active. While adhering to technological requirements and grid security requirements, the process minimized the overall variable cost of generation throughout all of India.

The present approach reduced variable costs throughout all of India by Rs 2,300 crore, and these savings were distributed to generators and others who benefited from them. As a result, consumers paid less for power.

By integrating all regional entity thermal power plants and then all intra-state thermal generators, the updated method will also broaden the reach of the current system.

This will also assist the states in ensuring enough resource availability in a way that is both economical and low-carbon.

The Day-Ahead National Merit Order Dispatch Mechanism will be put into place by CERC via the required regulatory procedure, and it will be managed at the federal level by GRID-INDIA.

Since 2014, the government has expanded the nation’s generation capacity by 184.6 GW and its transmission network by 1,78,000 ckt km (circuit kilometres), transforming the entire nation into a single, integrated electrical system.

In order to increase competition in the market and bring down consumer electricity costs, the power ministry has been implementing a number of measures.

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