Government Launches High Price Day-Ahead Market and Surplus Power Portal
The new segment will accommodate systems where the cost of power generation is high
March 10, 2023
The Union Government has launched a High Price Day-Ahead Market (HP-DAM) and surplus power portal (PUShP), aiming to ensure greater power availability during the peak demand season.
In August last year, the Ministry of Power had proposed the introduction of HP-DAM.
The ministry had implemented a price cap of ₹12 (~$0.15)/kWh on electricity exchanges last year after noticing that prices on some days had reached up to ₹20 (~$0.24)/kWh. The cap was enforced from April 1, 2022, in both the Day-Ahead Market and Real-Time Market, and later across all segments from May 6, 2022 to prevent profiteering.
The cap helped to rationalize prices for buyers, especially since the cost of producing electricity using gas was high, at more than ₹12 (~$0.15)/kWh. This led to a situation where gas-based electricity generation could not be sold on the market.
Also, imported coal-based plants and renewable energy stored in battery-energy storage systems could not be called into action as the generation cost was high.
Due to an anticipated increase in demand this year, the scheduling of gas-based and imported coal-based plants will be necessary. As a result, a new segment called HP-DAM has been established to accommodate these generation systems, where the cost of generating power from gas, imported coal, and renewable energy with storage could exceed ₹12 (~$0.15)/kWh.
At the launch event, Union Power Minister R.K. Singh stated that the creation of HP-DAM was a crucial part of the overall strategy to maximize power capacity and provide power to consumers. Singh emphasized that electricity pricing within the HP-DAM would be closely monitored to prevent excessive charging.
He clarified that only those generating capacities whose cost of producing power exceeds ₹12 (~$0.15)/kWh would be permitted to operate within HP-DAM. Capacities whose production costs fall below ₹12 (~$0.15)/kWh would be required to offer their power within the power exchange’s Integrated Day Ahead Market (I-DAM) with a price ceiling of ₹12 (~$0.15)/kWh.
The minister instructed the CEA and Grid Controller to ensure that HP-DAM prices are reasonable and to take appropriate action against any power producer charging exorbitant prices that surpass the production cost.
Distribution companies (DISCOMs) are obligated to pay fixed charges for long-term power purchase agreements, regardless of whether they schedule the power or not. The surplus power portal will allow DISCOMs to display their excess energy during specific block times, days, or months on the portal.
The new buyer will pay both the variable charge and the fixed cost determined by regulators. Once the power is reassigned, the original beneficiary loses the right to recall it, and the entire fixed-cost liability will be transferred to the new beneficiary.
The financial responsibility of the new buyer is limited to the quantity of temporarily allocated or transferred power. This will reduce the fixed cost burden on DISCOMs and ensure that all available generation capacity is utilized.
Recently, the Ministry of Power announced a comprehensive strategy to ensure power availability during the summer.
Get the most relevant India solar and clean energy news.
RECENT POSTS
LATEST HEADLINES
Maharashtra Approves Tariffs for 8.7 MW of Solar Power Under KUSUM Program
Mar 21, 2023
Brookfield to Aquire KKR’s 50% Stake in Renewable Developer X-Elio
Mar 21, 2023
NTPC’s Subsidiary Will Develop Renewable Projects for IndianOil Refineries
Mar 21, 2023
Constant Climate-Centric Funding Can Limit Global Temperature Under 1.5°C
Mar 21, 2023
India Voices Concern over Europe’s Carbon Tariff Measure at WTO
Mar 21, 2023
India added 2.5 GW of solar open access in the calendar year (CY) 2022, a year-over-year (YoY) increase of 92% from the 1.3 GW installed in CY 2021, according to the newly released 2022 Q4 & Annual Mercom India Solar Open Acce...
March 15, 2023
Solar
Kerala Issues Empanelment Tender for 100 MW of Solar ProjectsThe Kerala State Electricity Board (KSEB) has invited bids to empanel solar developers to set up 100 MW of grid-connected rooftop and ground-mounted projects. Empanelled vendors also must furnish operation and maintenance (O&M...
March 20, 2023
Tenders and Auctions
Gujarat Invites Bids to Procure 500 MW of Wind Power with Greenshoe OptionGujarat Urja Vikas Nigam (GUVNL) has invited bids to procure power from 500 MW of grid-connected wind projects (Phase V) with a greenshoe option of an additional capacity of up to 500 MW. The last day to submit the bids online is ...
March 17, 2023
Rooftop
MSMEs Adopt Solar Readily If Savings on Power Bills Cover EMI Cost: InterviewSmall businesses are open to adopting rooftop solar if loan repayment is not an additional burden and is equal to their savings on electricity bills. Entities in the commercial and industrial (C&I) segment are increasingly mov...
March 17, 2023
Trending News
Tender & Auctions
Indian Oil Floats O&M Tender for 8 MW Solar Project in Ahmedabad
March 14, 2023
Technology
Researchers Find Solution to Manage Load in Solar PV & Storage Systems
February 28, 2023
February 27, 2023
February 24, 2023
January 17, 2023
Magazine
Grid
Sterlite Bags ISTS Project to Evacuate 20 GW of Renewables in Rajasthan
March 13, 2023
Latest News
The Maharashtra Electricity Regulatory Commission (MERC) has adopted tariffs of ₹3.28 (~$0.039)/kWh, ₹3.29 (~$0.039)/kWh, and ₹3.30 (~$0.040)/kWh for the procurement of 8.7 MW of solar power on a long-term basis. The Commission...
March 21, 2023
Global investment firm Kohlberg Kravis Roberts (KKR) has agreed to sell 50% of its stake in renewable developer X-ELIO to its joint venture partner Brookfield Renewable. Financial details were not disclosed. Since KKR’s...
March 21, 2023
NTPC Limited’s wholly owned subsidiary, NGEL, has entered into a joint venture agreement with Indian Oil Corporation (IOCL) to develop renewable energy projects that can meet round-the-clock power requirements to meet the...
March 21, 2023
Financial support from developed economies to developing nations which is a critical enabler of climate action has been inadequate, said scientists in the latest Intergovernmental Panel on Climate Change (IPCC) report...
March 21, 2023
India has expressed concern about the carbon border measures proposed by the European Union (EU) at a recent meeting of the World Trade Organization’s (WTO) Committee on Trade and Environment. Presenting a paper on the increasing...
March 21, 2023
JSW Neo Energy (JSW Energy) and Greenko KA 01 IREP (Greenko) have won the Power Company of Karnataka’s (PCKL) auction to supply 1 GW of energy for 8 hours daily from pumped hydro storage projects providing continuous 5-hour...
March 21, 2023
Sterling and Wilson Renewable Energy, the solar engineering, procurement, and construction (EPC) arm of Shapoorji Pallonji Group, won NTPC’s tender for the balance of system (BOS) package to develop 1.2 GW (4*300 MW) of solar...
March 21, 2023
Indian Oil Corporation (IOCL) has invited bids for the operation and maintenance (O&M) of an existing 8 MW solar power project at the LPG bottling plant at Sanand in Ahmedabad for five years. The last date to submit the bids...
March 21, 2023
Researchers at the Indian Institute of Technology Mandi (IIT Mandi) have claimed a breakthrough in producing metal oxide layers for use in advanced architecture silicon solar cells using a cost-effective method. This innovative...
March 21, 2023
The government has allowed NTPC to invest in its subsidiary, NTPC Green Energy (NGEL), beyond the limit allowed for a ‘maharatna’ central public sector enterprise (CPSE). The extant guidelines prescribe a ceiling of 30% of a...
March 21, 2023
Get the most relevant India solar and clean energy news.
POPULAR POSTS
Maharashtra Approves Tariffs for 8.7 MW of Solar Power Under KUSUM Program
Mar 21, 2023
Brookfield to Aquire KKR’s 50% Stake in Renewable Developer X-Elio
Mar 21, 2023
NTPC’s Subsidiary Will Develop Renewable Projects for IndianOil Refineries
Mar 21, 2023
Constant Climate-Centric Funding Can Limit Global Temperature Under 1.5°C
Mar 21, 2023
India Voices Concern over Europe’s Carbon Tariff Measure at WTO
Mar 21, 2023
JSW and Greenko Win Karnataka’s Bid for 1 GW of Pumped Storage Projects
Mar 21, 2023
Sterling and Wilson Bags BoS Package Tender for 1.2 GW Solar Projects
Mar 21, 2023