New portal to ensure availability of power during peak demand

The central government has launched a High Price Day Ahead Market (HP-DAM) and Surplus Power Portal (PUShP), a power ministry statement said

Gas and imported coal-based plants would be allowed to sell electricity above the ceiling price of Rs 12 per unit, set by the Central Electricity Regulatory Commission (CERC) if their cost is higher than the cap price.

The Central government has launched an initiative called High Price Day Ahead Market under which gas and imported coal-based power plants would be allowed to sell power above the cap price.

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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,” Ministry of Power said in a statement.

In April last year, power regulator the Central Electricity Regulatory Commission (CERC) revised the ceiling on spot power to Rs 12 per unit from Rs 20 per unit. This ceiling is applicable till the end of the 2023 calendar year.

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However, the government has decided to show flexibility as gas and imported coal-based plants, which are mostly in the private sector, stop production when their cost jumps. This leads to scarcity in supply.

Union Power Minister R K Singh said the HP-DAM is a part of the overall strategy to ensure that all available power capacity is utilised for supplying the power to consumers.

The minister said that only those generating capacities which have a 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 Rs 12, the generators will have to offer power in the Power Exchange’s Integrated Day Ahead Market (I-DAM) only with a ceiling price of Rs 12.

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.