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Indian electricity distribution companies (discoms) struggling with huge debts can together expect to save up to Rs 20,000 crore per annum with better scheduling of power, through an app developed by the government that provides information on sourcing cheaper electricity.

MERIT app

  • Merit Order Dispatch of Electricity for Rejuvenation of Income and Transparency (MERIT) have been developed by the power ministry in association with POSOCO and Central Electricity Authority.
  • Mobile application facilitating flexible coal swap between state-run and private plants and aweb portal to make electricity purchase by states transparent.
  • States have been found to be flouting merit order of electricity dispatch giving flimsy and extraneous reasons.
  • After the launch of the Merit app states will have to explain reasons for deviating from merit order scheduling.
  • Displays information regarding the merit order of electricity procured by states, such as daily state-wise marginal variable costs of all generators, daily source-wise power purchases with source-wise fixed and variable costs, energy volumes and purchase prices.
  • It also gives information regarding reasons for deviation from merit order, which will help state discoms to optimise their power procurement in more efficient way, leading to lower cost of power to consumers.

Source : Economic Times

GS III : Infrastructure: Energy, Ports, Roads, Airports, Railways etc

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