In order to enable high-cost projects like gas or imported coal-based plants to sell power, the government is considering creating a new market category on power exchanges that would permit the selling of energy at rates higher than the general cap.
Many of these expensive power plants are now not in use since there are no buyers for them.
On power exchanges, spot electricity costs are restricted at $12 per unit. The initiative aims to revive these dormant projects while also ensuring enhanced power accessibility.
A shortage of consumers results in over 24 GW of gas-based capacity and 17 GW of imported coal-based capacity being either idle or underutilised because per-unit costs are high due to high fuel costs.
