The Ministry of Power has notified a discussion paper on Market-based Economic Despatch. MBED envisages a centralised system to route electricity consumption in all states through power exchanges to discover a national uniform price and ensure that cheapest available power is dispatched. …
The move is expected to lead to significant savings in procurement costs. According to the draft proposal, on an average MBED can yield around 4 per cent savings on an average in the power procurement costs. The ministry has invited comments and suggestions to the discussion paper by June 30, 2021.