Ministry of Power has circulated discussion Paper on Market Based Economic Despatch (MBED) on 1st June 2021 to all concerned stakeholders for obtaining their inputs and comments.
Salient features of Market Based Economic Despatch (MBED)
- It covers the proposed mechanism for implementation, estimation of the indicative benefits of the mechanism, key issues and suggested mitigation mechanisms and the proposed way forward
- Through this Discussion note, the Ministry of Power intends to hold wider consultations with all the stakeholders to arrive at a consensual way forward on implementing Phase 1 of MBED from 1 April 2022.
Benefits of Market Based Economic Despatch (MBED)
- MBED will ensure that the cheapest generating resources across the country are despatched to meet the overall system demand and will thus be a win-win for both the distribution companies and the generators and ultimately result in an estimated annual savings in excess of INR 12,000 crores for the electricity consumers.
- MBED shall also facilitate larger integration of variable renewable energy by enlarging the balancing area to the national level and is also expected to optimize the need for reserves and ancillary services.
(PIB)
