Ministry Of Power Releases Framework for Implementation of Market Based Economic Despatch Phase 1

Ministry of Power released Framework for Implementation of Market Based Economic Despatch (MBED) Phase1 for lowering the cost of power purchase to consumers. With success in generation capacity additions over the past few years and a well-integrated national electricity grid, the time is right to move towards optimising the operation of generating plants in the country to deliver benefits of reduced operating costs to the distribution utilities and end consumers. A robust day-ahead market will also form the basis for transitioning away from the country's over-dependence on longer-term PPAs to sustainable market-based operations. The ministry noted that it is widely recognized that an essential next step in reforming electricity market operations and in moving towards One Nation, One Grid, One Frequency, One Price framework is to implement Market Based Economic Despatch (MBED) in the day-ahead horizon, initiated by the Central Electricity Regulatory Commission. MBED will ensure that the cheapest generating resources across the country are despatched to meet the overall system demand and will thus be a win-win for both the distribution companies and the generators and ultimately result in significant annual savings for the electricity consumers.

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