Karnataka Electricity Regulatory Commission Merit Order Dispatch And Optimization Of Power Purchase Cost Regulations 2024

The Karnataka Electricity Regulatory Commission (KERC) has laid out the comprehensive regulations
for merit order dispatch and optimization of power purchase costs in 2024 the KERC has also
introduced new regulations for the merit order dispatch and optimization of power purchase costs.
This involves creating detailed operating procedures for scheduling and dispatching power in
consultation with generators and licensees.
The State Load Dispatch Centre (SLDC) in Karnataka follows the rules set by the Karnataka Electricity
Grid Code. Its job includes figuring out the total cost of generating and sending electricity to the
state’s power grid. This cost covers everything from making electricity at power plants to moving it
through transmission lines to reach users

The merit order dispatch regulation aims to optimize power purchase costs by ensuring that the
SLDC follows a transparent and efficient process for scheduling power from various generating
stations. This includes considering all associated costs and not just the rates offered by generating
companies. The goal is to minimize the overall cost of power procurement while ensuring a reliable
and stable electricity supply across Karnataka.
These regulatory changes reflect KERC’s commitment to balancing the promotion of renewable
energy with practical considerations for power generation and distribution. By excluding co-
generation plants from additional renewable purchase obligations and optimizing power purchase
costs, KERC aims to support the state’s energy needs efficiently and sustainably.
These regulations aim to streamline the process of power procurement, ensuring that the electricity
consumed by the state’s residents is not only affordable but also environmentally friendly.
The KERC Merit Order Dispatch and Optimization of Power Purchase Cost Regulations, 2024,
represent a significant step forward in Karnataka’s energy policy. By prioritizing cost-efficiency,
resource adequacy, and renewable energy integration, these regulations set a high standard for
other states to follow. As Karnataka moves towards a more sustainable and efficient power sector,
these regulations will play a crucial role in shaping the future of energy in the state.
These Regulations shall come into force  from Jun 24, 2024

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