MERIT App,Merit Order Stack and E-Bidding Portal for Utilization of Domestic Coal (Download PDF)

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’MERIT app or Merit Order Despatch of Electricity for Rejuvenation of Income and Transparency and the e-bidding portal provide e-Bidding solution to States to select Independent Power Producers (IPPs) for procurement of power by transferring their domestic coal under the scheme of flexibility in utilization of domestic coal.

Image of Advantages of MERIT App

Image of Advantages of MERIT App

Image of Advantages of MERIT App

E-Bidding Portal

Optimum utilization of Coal through these app/web portal would save the consumer close to Rs. 20, 000 crores five years down the line

  • ‘Minimum Government and Maximum Governance’ through ‘Speed, Skill and Scale’
  • Increase transparency and accountability
  • Ensure access to affordable, quality, 24x7 Power for All
  • Optimal utilization of the valuable and scarce energy resources achieving economy and efficiency in operation.

Merit Order

A way of ranking available sources of energy, based on order of price together with amount of energy so that lowest marginal cost stations are brought online first, and plants with the highest marginal costs are the last minimizing cost of production.

  • Domestic coal allocation scheme envisages transferring coal to more efficient IPPs generating stations, leading to lower generation costs and ultimately lesser cost of electricity for the consumers.
  • Merit order stack a common approach to the problem of minimizing the sum of generators’ operating costs while honoring the operational constraints of the available generation to supply the demand in a secure and reliable manner.
  • The Tariff Policy, 2016 provides that the States/DISCOMs shall follow merit order for procurement of power and there should be uniformity in merit order mechanism.
  • Merit Order Dispatch Committee was constituted in October 2016 with Chairperson, Central Electricity Authority (CEA) as its Chairperson and Joint Secretary (OM), Ministry of Power (MoP) as its Member Secretary.
  • Recommendations with respect to Transparency in Merit Order operations and promotion of Renewables through effective implementation of Must-Run status of Renewables (renewable resources must run to be effective).
  • Adherence to merit order optimizes the power procurement cost and benefits both utility and ultimate consumer.
  • Sometimes generating units must be started out of merit order, due to transmission congestion, system reliability or other reasons.

Merit Order Despatch of Electricity (MERIT)

Merit Order Despatch of Electricity (MERIT) app and website developed in association with POSOCO. Displays information regarding the merit order such as daily state-wise marginal variable costs of all generators, daily source-wise power purchases of respective states/UTs with source-wise fixed and variable costs, energy volumes and purchase prices. Also provides information on reasons for deviation from merit order such as must run conditions, transmission constraints etc.

Advantages of MERIT App

  • Empowerment of the Consumer and participative governance
  • Transparent information dissemination pertaining to marginal variable cost and source wise purchase of electricity
  • Promotes economy and efficiency in operations
  • Helps understand the utility portfolio and its complexity
  • Optimization of the power procurement costs
  • Facilitates renewable integration and handling of the variability and uncertainty of renewables
  • Indication of supply side reliability, adequacy, and co

E-Bidding Portal

  • Designed to facilitate States in inviting bids for procurement of power from the prospective IPPs in
  • Successful bidder selected through e-Reverse Bidding process.
  • Central Electricity Authority (CEA) issued the methodology for utilization of domestic coal within stations on 8th June 2016

- Published/Last Modified on: July 21, 2017

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