Gencos with high input cost allowed to sell power at up to Rs 50 per unit
Power generating companies that incur high variable costs due to fuel expenses and other charges will soon able to sell electricity at a price of up to Rs 50 per unit on energy exchanges.
The relaxation in norms by the Central Electricity Regulatory Commission (CERC) will provide relief to three category of power generating companies (gencos) — those running their plants on expensive natural gas (RLNG), imported coal and using Battery Energy Storage System (BESS).
At present, there is a price ceiling of Rs 12 per unit in the Day Ahead Market (DAM) on the energy exchanges.
With the ceiling, gencos having high variable costs for operating their plants are generally not keen on selling electricity on the energy exchanges and this in turn results in stranded power generation capacity.
