New merit of power supply: Cost reduction for gencos, savings for discoms

To reduce the cost of electricity, the Ministry of Power in 2016 introduced a mechanism and monitoring portal called MERIT

India could soon have a new merit order of power supply across the country, which could potentially save Rs 2.5 crore a day for the states. Power System Operation Corporation (POSOCO) is running a pilot project with 57 thermal power projects to ensure round-the-clock availability of cheaper power and reducing outages. POSOCO is the grid manager of the country entrusted with scheduling and dispatching of power across the national grid.

The pilot that started last month has power units which are in the central pool. This includes all units of central government-owned behemoth NTPC and private interstate generating stations such