Centre weighs new segment on power bourses for costly projects

The government is considering a new market segment on power exchanges that would allow the sale of electricity at prices higher than the general ceiling to allow high-cost projects such as gas or imported coal-based plants to sell power.

Many of these high-cost power plants are currently not operational as they do not have buyers.

Spot electricity prices on power exchanges are capped at ₹12 per unit. The proposal seeks to ensure increased electricity availability while also reviving these non-operational projects. Nearly 24 GW of gas-based capacity and 17 GW of imported coal-based capacity is either idle or under-utilised due to a lack of buyers since per unit prices are high because of steep fuel costs.

"The proposed high price day ahead market segment will enable high-cost power plants to be made available during the high demand period," said a power ministry proposal seeking stakeholder comments. "Only such buyers who are in deficit and can afford to pay high price will be able to participate in this segment."