Development of power market in India: Phase 1 - implementation of market based economic dispatch (MBED)

This paper, based on inputs from key stakeholders on the subject, outlines a phased introduction of MBED with Phase 1 involving only the thermal fleet of NTPC to test the efficacy of the MBED mechanism, identify deficiencies or potential issues that need to be addressed prior to a nation-wide rollout, familiarize all key stakeholders with the framework and allow for necessary infrastructure and systems to be built out and tested before scale up. The Ministry of Power intends to hold wider consultations now with all states to arrive at a consensual way forward on implementing Phase 1 of MBED from 1° April 2022,