MERIT app and e-bidding for utilisation of domestic coal in IPP power stations to reduce power generation cost

MERIT app and e-bidding for utilisation of domestic coal in IPP power stations to reduce power generation cost

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New Delhi, Jul 5

Union Minister of State for Power, Coal, New & Renewable Energy and Mines, Piyush Goyal here today launched the ‘MERIT app (Merit Order Despatch of Electricity for Rejuvenation of Income and Transparency)’ and the e-bidding portal for providing e-Bidding solution to States to select Independent Power Producers (IPPs) which would save the consumer close to Rs 20,000 crores five years down the line. Both the initiatives were taken for procurement of power by transferring their domestic coal under the scheme of flexibility in utilization of domestic coal, said the Minister.

While briefing the media on the occasion, Mr Goyal said that both the initiatives were taken in the direction of Prime Minister Narendra Modi’s vision of ‘Minimum Government and Maximum Governance’ through ‘Speed, Skill and Scale’. The advantage of MERIT app included empowerment of the Consumer and participative governance, transparent information dissemination pertaining to marginal variable cost and source wise purchase of electricity and promotes economy and efficiency in operations.

Besides, it would also help understand the utility portfolio and its complexity and optimization of the power procurement costs and would also facilitate renewable integration and handling of the variability and uncertainty of renewable. The app would also indicate about supply side reliability, adequacy, and co and the flexibility in utilization of domestic coal scheme envisages transferring coal to more efficient IPPs generating stations, leading to lower generation costs and ultimately lesser cost of electricity for the consumers.

The Minister also launched the e-Bidding portal, which has been designed to facilitate States in inviting bids for procurement of power from the prospective IPPs in transparent and fair manner. The successful bidder shall be selected through e-Reverse Bidding process. Ministry of Power, along with PFC Consulting Ltd and MSTC Ltd, has developed the e-bidding portal.

The link for portal is available on the website of Ministry of Power and PFC Consulting Ltd. Mr Goyal said that over the last three years, India has rapidly achieved adequacy in terms of availability of power and it was the time to shift the focus to optimal utilization of the valuable and scarce energy resources for achieving economy and efficiency in operation.

The app displays extensive array of information regarding the merit order such as daily state-wise marginal variable costs of all generators, daily source-wise power purchases of respective states/UTs with source-wise fixed and variable costs, energy volumes and purchase prices. The app also gives information regarding reasons for deviation from merit order such as must run conditions, transmission constraints etc.

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