Context:
Recently, the National Power Committee (NPC) has asked States to provide suggestions for offering incentives to buyers and sellers on the surplus power portal PUSHp.
Relevance:
GS II: Government policies and Interventions
Dimensions of the Article:
- PUShP Portal
- Day Ahead Market
PUShP Portal
- The Ministry of Power introduced the High Price Day Ahead Market (HP-DAM) and Surplus Power Portal (PUShP).
- The portal aims to enhance power availability during peak demand periods by enabling certain category of sellers to offer power at prices surpassing the Rs 12 per unit ceiling.
Enhancing Power Availability:
- PUShP facilitates the submission of surplus power availability by power distribution companies (DISCOMs) across various time blocks, days, or months.
- DISCOMs in need of power can requisition the surplus power indicated on the portal.
Transaction Dynamics:
- The new buyer acquires the surplus power and pays both variable charge (VC) and fixed cost (FC) as determined by Regulators.
- Upon reassignment, the original beneficiary relinquishes the right to recall, transferring the entire FC liability to the new beneficiary.
Benefits:
- Reduces fixed cost burden on DISCOMs.
- Maximizes utilization of available generation capacity.
Day Ahead Market
- The Day Ahead Market is a tangible electricity trading marketplace where power delivery occurs within 24 hours of the next day, commencing from midnight.
- Trading is conducted in 15-minute time blocks, with electricity prices and quantities determined through an auction bidding process.
-Source: Indian Express
