Gencos with high input cost allowed to sell power at up to Rs 50 per unit on energy exchanges

The Central Electricity Regulatory Commission (CERC), earlier this month, has allowed the introduction of a new segment, high price day ahead market (HP-DAM), on the energy exchanges wherein electricity can be sold and bought at a price as high as Rs 50 per unit.

With this, power generating companies that incur high variable costs due to fuel expenses and other charges will soon be able to sell electricity at a price of up to Rs 50 per unit on energy exchanges. The relaxation in norms by the CERC will provide relief to three category of power generating companies – those running their plants on expensive natural gas (regasified liquefied natural gas), imported coal and using battery energy storage system. At present, there is a price ceiling of Rs 12 per unit in the day ahead market on the energy exchanges.