Central Government launches High Price Day Ahead Market and Surplus Power Portal

Tags: National National News

The Central Government has launched a High Price Day Ahead Market and Surplus Power Portal (PUShP)– an initiative to ensure greater availability of power during the peak demand season recently.

An overview of the news

• Power Minister R K Singh virtually launched the portal in New Delhi on 9 March 2023.

• Last year, prices in the power exchange had shot up to Rs 20on a few days, prompting the CERC to impose a cap of Rs 12 on the exchange, so that there was no profiteering.

• This limit was applicable in day ahead market and real time market from April 1, 2022 and May 6, 2022 across all segments.

• This move made the price reasonable for the buyers. Due to high gas prices in the international market; The electricity generated using the gas was expensive – more than Rs 12 per unit – and could not be sold in the market at this price.

• Similarly, renewable energy stored in imported coal-fired plants and battery-energy storage systems could not be put into operation because of their high production costs.

High Price Day Ahead Market and Surplus Power Portal

• This portal is one of its kind initiatives, which reflects the ingenuity of the Ministry of Power and the regulator.

• Distribution companies have entered into long term PPA agreements for power supply.

• They have to pay fixed charges even if they do not fix the electricity schedule.

• Now discoms will be able to quote their surplus power in block time/days/months on the portal.

• Discoms that need power will be able to demand surplus power.

• New buyers will pay both variable cost (VC) and fixed cost (FC) as prescribed by the regulators.

• Once the power is reassigned, the original beneficiary will have no right of withdrawal, as the entire FC liability will also be transferred to the new beneficiary.

• This will reduce the burden of fixed cost on DISCOMs and enable utilization of all available generation capacity.