• 9964432222
  • Mail Us
  • Appointment
  • Locate Us
  • Chat Now
  • Courses
  • Login
  • Register
Manifest IAS
JournalsOfIndia
Manifest Learning Academy
  • Home
  • SNIPPETSfor Prelims
  • ARTICLESfor Mains
  • BROWSEBY SOURCE
  • DOWNLOADS
No Result
View All Result
  • Home
  • SNIPPETSfor Prelims
  • ARTICLESfor Mains
  • BROWSEBY SOURCE
  • DOWNLOADS
No Result
View All Result
JournalsOfIndia
No Result
View All Result
Home Economy

The Market-Based Economic Dispatch (MBED) mechanism

September 23, 2022
in Economy
Reading Time: 3 mins read
0
The Market-Based Economic Dispatch (MBED) mechanism
326
VIEWS
Share on WhatsAppShare on TelegramShare on Facebook
image_pdfMake PDF
In news– A fresh tussle between the Centre and states is brewing over the Market-Based Economic Dispatch (MBED) mechanism that envisages centralised scheduling for dispatching the entire annual electricity consumption of around 1,400 billion units.

What is MBED mechanism?

  • The new model proposes a centralised scheduling of power dispatches, both inter-state and intra-state. 
  • MBED model is seen as on the relative autonomy of states in managing their electricity sector, including their own generating stations, and make the discoms entirely dependent on the centralised mechanism which has been buttressed by the Electricity Act 2003 and follow-on reforms.
  • There are concerns this could strip states of their freedom to decide their own electricity requirement while managing seasonal and local demand trends. 
  • The Union power ministry said  MBED as a way forward to deepen power markets in line with the Centre’s ‘One Nation, One Grid, One Frequency, One Price’ formula. 
  • The implementation of the first phase of MBED was earlier planned to start with effect from April 1, but was put off for later in 2022, with a date yet to be announced.
  • The Centre’s argument is that the current model of states doing scheduling is suboptimal. As part of this, an algorithm developed by the NLDC called the Security Constrained Economic Dispatch (SCED) is being cited as a solution.
  • SCED is aimed at assisting regulators in making informed calls on scheduling decisions on a nationwide basis. 
  • Power is in the Concurrent List of the Constitution, with the electricity grid being divided into state-wise autonomous control areas managed by the State Load Dispatch Centres (SLDCs), which in turn are supervised by Regional Load Dispatch Centres (RLDCs) and the National Load Dispatch Centre (NLDC).
  • As things stand, each control area is responsible in real time for balancing its demand with generation resources.
  • The MBED model proposes to change this by putting in place a central market operator to dispatch the inter-state as well as intra-state generation plants. 
  • Also, there is an inference that the new model will narrow the multiple options currently available under the voluntary market design; with day-ahead contracts turning redundant and, from a state’s perspective, the discoms and SLDC needing to buy or sell power in the real-time market, even if it is for the sake of maintaining demand-supply balance in their control areas.

Note:

  • India has a diversified electricity market ranging from long-term power purchase agreements (PPAs), cross border PPAs, short and medium term bilaterals, day-ahead power exchange, and a real-time online market. 
  • A major percentage of the installed power capacity –over 87 per cent – is tied up under long term PPAs of around 25 years. 
  • The remaining 13 per cent is transacted in the power markets, with nearly half of this over the power exchanges and the remaining through short-term and medium-term bilateral deals.
  • At present, each control area or state follows merit-order dispatch (cheapest power dispatched first) from the basket of intra-state and inter-state resources and buys or sells on the day-ahead power exchange. 
  • The schedules under long-term PPAs can be revised, but not for the power traded at the day-ahead power exchange. 
  • The un-tied generators in the private sector scout for buyers in the bilateral market as well as on the power exchanges on a voluntary basis currently.
image_pdfMake PDF
Source: The Indian Express
Tags: NewspaperPrelims

Related Posts

Revamped CGTMSE Scheme

Revamped CGTMSE Scheme

May 1, 2023
Common Reporting Standard

Common Reporting Standard

May 1, 2023
What is Gum Arabic?

What is Gum Arabic?

May 1, 2023
World Development Report 2023: Migrants, Refugees, and Societies

World Development Report 2023: Migrants, Refugees, and Societies

April 27, 2023
Manamadurai pottery

Manamadurai pottery

April 26, 2023
Logistic Performance Index (LPI) 2023

Logistic Performance Index (LPI) 2023

April 25, 2023
Parvatmala Pariyojana

Parvatmala Pariyojana

April 22, 2023
CPCB revised the financial grants for biomass pellet manufacturing units

CPCB revised the financial grants for biomass pellet manufacturing units

April 22, 2023
Global Unicorn Index 2023 by Hurun

Global Unicorn Index 2023 by Hurun

April 22, 2023
Mission 50K-EV4ECO of SIDBI

Mission 50K-EV4ECO of SIDBI

April 21, 2023
Please login to join discussion

Our Offline Classroom Student

CONGRATULATIONS TO 2021 TOPPERS !!!

Rank 171 Kumar Shivashish
Rank 250 Sahithya
Rank 263 Sumit Kumar Thakur
Rank 311 Deepak Ramachandra Shet
Rank 455 Ravinandan B M

July 2025
MTWTFSS
 123456
78910111213
14151617181920
21222324252627
28293031 
« May    

Browse by Category

  • Agriculture
  • Disaster Management
  • Economy
  • Environment
  • Ethics
  • Foreign Affairs
  • Geography
  • Governance
  • History
  • Law & Policy
  • Opinion
  • People in News
  • Places in News
  • Science & Tech
  • Security
  • Society
  • Sports
  • Uncategorized

Browse by Tags

AIR All India Radio BBC Business Line Business Standard dow Down to Earth DownToEarth DTE Economic Times ET FAO Financial Express GS-1 GS-2 GS-3 GS-4 Hindustan Times IE India & the world Indian express Indiatoday India today Kurukshetra Livelihoods portal LiveMint Mains News Newspaper News Paper PIB Prelims PRS India RSTV Science Reporter Survey The Hindu The India Express The Indian Express The Print the wire Times of India TOI TOPPERS Yojana
JournalsOfIndia

Our vision is to orient the readers to grasp the facts objectively and analyse critically. In the rush of reaching first to the readers, the websites miss the balanced opinion, which is the need of the hour. We aim to reach the readers with more crispness, preciseness and relevance. We bring the articles in UPSC way for the civil services aspirants and the Wisest Way for general readers.

Categories

  • Agriculture
  • Disaster Management
  • Economy
  • Environment
  • Ethics
  • Foreign Affairs
  • Geography
  • Governance
  • History
  • Law & Policy
  • Opinion
  • People in News
  • Places in News
  • Science & Tech
  • Security
  • Society
  • Sports
  • Uncategorized

Browse by Tag

AIR All India Radio BBC Business Line Business Standard dow Down to Earth DownToEarth DTE Economic Times ET FAO Financial Express GS-1 GS-2 GS-3 GS-4 Hindustan Times IE India & the world Indian express Indiatoday India today Kurukshetra Livelihoods portal LiveMint Mains News Newspaper News Paper PIB Prelims PRS India RSTV Science Reporter Survey The Hindu The India Express The Indian Express The Print the wire Times of India TOI TOPPERS Yojana

Newsletter

The most important UPSC news and events of the day.

Get Journals daily newsletter on your inbox.

© 2020 JournalsOfIndia - A free initiative by Manifest Team.

  • Login
  • Sign Up
  • Home
  • SNIPPETS
  • ARTICLES
  • BROWSE
  • DOWNLOADS
No Result
View All Result

© 2020 JournalsOfIndia - A free initiative by Manifest Team.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In