Called the Market-Based Economic Dispatch (MBED) mechanism. The Union Ministry of Power proposal envisages centralised scheduling for dispatching. The entire annual electricity consumption of around 1,400 billion units.
A FRESH slugfest between the Centre and states is brewing in the country’s power sector. The trigger being a plan by the Union government to jettison the existing decentralised. Voluntary pool-based electricity market in favour of a radically different mandatory pool model on a pan-India basis.
Called the Market-Based Economic Dispatch (MBED) mechanism. The Union Ministry of Power proposal envisages centralised scheduling for dispatching the entire annual electricity consumption of around 1,400 billion units. This will mark a clear shift from a decentralised model followed now. Which has been buttressed by the Electricity Act 2003 and follow-on reforms.
Centralised vs decentralised power model
The new model proposes a centralised scheduling of power dispatches. Experts say, will impinge on the relative autonomy of states in managing their electricity sector, including their own generating stations, and make the discoms entirely dependent on the centralised mechanism.
The MBED model is seen as impinging on the relative autonomy of states in managing their electricity sector, including their own generating stations, and making the discoms (distribution companies that are mostly state-owned) entirely dependent on the centralised mandatory market pool requirements. Experts said states are already discussing these aspects.
While the Union power ministry is pitching MBED as a way forward to deepen power markets in line with ‘One Nation, One Grid, One Frequency, One Price’ formula. There are concerns being flagged at the state level and by a range of sectoral experts The Indian Express spoke with.
The implementation of the first phase of MBED was earlier planned to start with effect from April 1.