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.
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.
The advantages of MERIT app:
- Empowers the consumer.
- Promotes participative governance.
- Transparency in information dissemination relating to marginal variable cost and source wise purchase of electricity.
- Promotes economy and efficiency in operation.
- Optimises the procurement costs.
- Facilitates renewable integration and handling of the variability and uncertainty of renewables.
Union cabinet in May 2016 permitted flexibility in utilisation of domestic coal amongst power generating stations. Following which the Central Electricity Authority (CEA) has issued the methodology for utilisation of domestic coal within State/Central generating stations on 8th June 2016. The ministry of power then came up with the methodology for use of transferred coal in Independent Power Producers (IPPs) generating stations in February 2017.