A review of Market Based Economic Dispatch in India for uniform electricity pricing

Abstract

Electricity is one of the basic needs of the human being. In India, supplying electricity to all is seen as a social responsibility of the authorities. The stakeholders of the Indian power sector have always been keen on reducing the price of electricity for end-users. Keeping this in view, the regulatory body of the Indian power sector, the CERC has proposed a new framework called MBED to redesign the Day Ahead Market of electricity. MBED aims to optimise the utilisation of cheaper generation resources across the country to increase market competition and reduce the system’s generation cost. The implementation of MBED will give a uniform price of electricity across the country, which is currently different in different regions due to power purchase agreements between distribution and generation utilities. This paper reviews the proposed framework of MBED along with its potential benefits and implementation challenges.