06/07/2017 Governance, GS Mains, GS Paper 2, PIB 0 comment

Merit App and E-Bidding Portal

Union Minister of State (IC) for Power, Coal, New & Renewable Energy and Mines, Shri PiyushGoyal launched here today 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) for procurement of power by transferring their domestic coal under the scheme of flexibility in utilization of domestic coal.

MERIT APP

In this direction, a web portal and mobile apps for Merit Order Despatch of Electricity (MERIT) have been developed in association with POSOCO. 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.

E-bidding portal

Today, 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.

Advantages | E-Bidding

  • Empowerment of the Consumer and participative governance.
  • Transparent information dissemination pertaining to marginal variable cost and source wise purchase of electricity.
  • Promotes economy and efficiency in operations.
  • Helps understand the utility portfolio and its complexity.
  • Optimization of the power procurement costs.
  • Facilitates renewable integration and handling of the variability and uncertainty of renewables.
  • Indication of supply side reliability and adequacy.
  • 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.

Raj Malhotra IAS Study Group.