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Energy producing corporations that incur excessive variable prices on account of gas bills and different expenses will quickly in a position to promote electrical energy at a worth of as much as Rs 50 per unit on vitality exchanges.
The comfort in norms by the Central Electrical energy Regulatory Fee will present aid to a few class of energy producing corporations—these operating their vegetation on costly pure fuel, imported coal and utilizing Battery Power Storage System.
At current, there’s a worth ceiling of Rs 12 per unit within the day forward market on the vitality exchanges.
With the ceiling, gencos having excessive variable prices for working their vegetation are usually not eager on promoting electrical energy on the vitality exchanges and this, in flip, ends in stranded energy technology capability.
Towards this backdrop in addition to the upcoming summer time season, the CERC, earlier this month, allowed the introduction of a brand new section—Excessive Value Day Forward Market (HP-DAM)—on the vitality exchanges whereby electrical energy could be bought and purchased at a worth as excessive as Rs 50 per unit.
“The Fee hereby approves the proposal of the petitioner to introduce HP-DAM,” the regulator stated.
The order got here on a petition filed by the Indian Power Trade looking for the introduction of the brand new section.
“We now have determined to permit the higher worth restrict of HP-DAM at Rs 50/kWh maintaining in view the rising development in imported fuel costs and the newest knowledge of GRID-India (nationwide electrical energy grid operator),” the CERC stated.
The regulator additionally stated it will undertake periodic overview of this higher worth restrict based mostly on the best value of technology and different related international and home elements, together with the affect of HP-DAM on different markets.
Nonetheless, the regulator has not saved ground (minimal) worth of energy for the HP-DAM market.
“We’re of the thought-about view that maintaining the ground worth of ‘0’ will incentivise the eligible HP-DAM sellers as they might in a position to obtain the technical minimal and this may assist in attracting liquidity into this new market section. Thus, we agree with the petitioner’s proposal to maintain the ground worth of ‘0’ for HP-DAM,” it stated.
The CERC has allowed three classes of energy turbines to take part within the HP-DAM market—gas-based producing stations utilizing imported RLNG and naphtha; imported coal-based producing stations utilizing solely imported coal; and BESS.
The class of producing stations eligible to take part within the HP-DAM might be reviewed periodically by the regulator.
The demand for electrical energy is predicted to the touch 230 GW in April this yr.
The Ministry of Energy has already requested 15 imported coal-based vegetation to run at full capability from March 16 to June 15 to keep away from any shortfall in electrical energy provide throughout the summer time.
Such vegetation have additionally been permitted to go by excessive worth of imported coal used for producing electrical energy.
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