MoP notifies a discussion paper on market-based economic despatch

The MoP has notified a discussion paper on market-based economic despatch (MBED). 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 despatched. 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 in the power procurement costs. The ministry has invited comments and suggestions on the discussion paper by June 30, 2021.