NEW DELHI: The power ministry is considering a proposal to allow all generation companies (gencos) flexibility to supply electricity from any plant in their stable, a move that will reduce the cost of power for cash-strapped distribution companies (discoms) and ease the pressure to raise consumer tariffs.
The ministry’s line of thinking has been encouraged by fuel cost reduction of over Rs 300 crore since April due to such flexibility allowed to 49 coal-fired power stations of state-run NTPC, aggregating 56 GW (giga watt) capacity and about one billion units per day of generation.
The move is part of power minister R K Singh’s efforts at improving efficiency and sustainability in the power sector. Called Security Constraint Economic Despatch (SCED) in government parlance, the norm allows gencos to raise capacity utilisation of more efficient plants in their stable or units that are closer to coal mines and have lower freight cost — both of which have a bearing on cost of power.
