SJVN commissions 100 MW solar power unit in Gujarat
Under a long-term power purchase agreement, the power generated by the Raghanesda Solar Power Station will be supplied to Gujarat Urja Vikas Nigam Limited (GUVNL) for 25 years.
In a bid to move towards “One Nation, One Grid, One Frequency, One Price”, Centre on Friday announced the launch of the first phase of MBED (Market Based Economic Despatch) from April 2022.
The MBED system would not only bring healthy competition among power companies but would also reduce the power tariff. The Union Power Ministry said the implementation of Phase 1 of MBED is likely to start from April 1, next year with the mandatory participation of the Inter-State Generating Stations (ISGS). However, the participation of private generation plants could be on a voluntary basis.
“Before phase 1 is launched, the CERC (Central Electricity Regulatory Commission) would align their regulations and carry out mock drills to ensure that the system runs smoothly,” said a senior officer of the Power Ministry.
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MBED would ensure that the cheapest generating resources across the country are dispatched to meet the overall system demand, the Ministry said. This would be a win-win situation for both the distribution companies and the generators and ultimately result in significant annual savings for the electricity consumers, the Ministry said.
The Ministry of Power had been examining suitable mechanisms to enhance competition in the power sector with the objective of lowering the cost of electricity to consumers.
“With success in generation capacity additions over the past few years and a well-integrated national electricity grid, it is time 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,” the Power Ministry said.
The MBED system would form the basis for transitioning away from the country’s over-dependence on longer-term PPAs (Power Purchase Agreements) for sustainable market-based operations. The ultimate target is to move towards the “One Nation, One Grid, One Frequency, One Price” framework as envisaged by the CERC, the Ministry said.
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