Power Minister R. K. Singh launches portal to ensure availability of power during peak demand season at high price

The Central government has launched a High Price Day Ahead Market and Surplus Power Portal, a Power Ministry statement said.

Union Power Minister R. K. Singh has launched a portal to ensure greater availability of power during the peak demand season at a price higher than the ceiling of ₹12 per unit by certain category of sellers.

The Central government has launched a High Price Day Ahead Market (HP-DAM) and Surplus Power Portal (PUShP), a Power Ministry statement said. Earlier in February, power regulator CERC had approved the HP-DAM segment where power can be sold at a price as high as ₹50 per unit.

HP-DAM will aid stranded gas and imported coal-based power plants to generate and sell expensive power to meet the high peak demand in summers which is expected to touch 239 GW this season.

Besides, the new segment will also ensure availability of electricity through an expensive battery energy storage system. The Union Minister said that only those generating capacities which have a cost of producing power of more than ₹12 per unit would be allowed to operate in HP-DAM.

“If the cost of production is less than ₹12, the generators will have to offer power in the Power Exchange’s Integrated Day Ahead Market (I-DAM) only with a ceiling price of ₹12,” he stated.

He asked the Central Electricity Authority and the Grid Controller to ensure that prices are reasonable in the HP-DAM and take necessary action to ensure that no Power Producers charge exorbitant prices, which are much more than the cost of production.

“Mr. Singh launched the portal at a virtual function in New Delhi on March 9 in presence of more than 200 stakeholders from State governments and the power sector,” the Ministry said.