MERIT app and e-Bidding portal for utilization of domestic coal in IPP Power Stations launched

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  • Union Minister of State for Power, Coal, New & Renewable Energy and Mines, Piyush Goyal has launched the ‘MERIT app (Merit Order Despatch of Electricity for Rejuvenation of Income and Transparency)’ and the e-bidding portal for offering an e-Bidding solution to States.
  • The app and the portal would help the states to select Independent Power Producers (IPPs) for procurement of power by transferring their domestic coal under the scheme of flexibility in utilisation of domestic coal.

Objective:-

  • The launch of the app and the portal is aimed at promoting the vision of ‘Minimum Government and Maximum Governancee’ through ‘Speed, Skill and Scale’.
  • It would result in optimum utilisation of Coal and would save the consumer around Rs.
  • 20,000 crores in the next five years.
  • It would increase the transparency and accountability.
  • 24×7 Power for All.

The 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.
  • The flexibility in utilization of domestic coal scheme envisages transferring coal to more efficient IPPs generating stations, leading to lower generation costs and ultimately lesser cost of electricity for the consumers.

E-bidding:-

  • An eBidding is an electronic bidding event (without awarding commitment) according to defined negotiation rules (eAgreement). A buyer and two or more suppliers take part in this online event.
  • It has been designed to facilitate States in inviting bids for procurement of power from the prospective IPPs in transparent and fair manner.

Background:-

  • The Cabinet, on 4 May 2016, approved the proposal for allowing flexibility in utilization of domestic coal amongst power generating stations.
  • Central Electricity Authority (CEA) has issued the methodology for utilization of domestic coal within State/Central generating stations on 8 June 2016, followed by the issuance of a memorandum by the Ministry of Power on 10 June 2016.
  • The methodology for use of transferred coal in Independent Power Producers (IPPs) generating stations was issued by Ministry of Power on 20 February, 2017.