Mr. Piyush Goyal, the Minister of State (Independent Charge) for Power, Coal and New & Renewable Energy launched DEEP (Discovery of Efficient Electricity Price) an online portal for the acquisition of short-term power by DISCOMs.
What is DEEP?
- DEEP stands for Discovery of Efficient Electricity Price. It is an e-Bidding & e-Reverse Auction portal for procurement of short-term power by Distribution Companies (DISCOMs).
- The “DEEP” web portal will ensure the continuous flow of power from seller to the buyer.
Each and every stakeholder in the Power Sector can access the portal “DEEP” through the following three Official Websites mentioned below:
- From the Official Website of Ministry of Power www.powermin.nic.in
- PFC Consulting website www.pfcclindia.com.
It will be a very strong weapon to bring the illegal transactions into the light, and confine all these illegal transactions. Deep will also help in price reduction through competition.
- The Minister Mr. Goyal has made the mandatory rules and regulations for every state that every state has to run by.
- The rule says, Each and every state should put their power purchase data on the portal within one month.
- And for those first 5 states which put their data within 1 week will be rewarded so that the other states can get inspired and do the work fast and proper manner.
- Mr. Goyal also witnessed the signing of Power for All agreement by the states of Madhya Pradesh, Nagaland, and Himachal Pradesh. Earlier during the Review, Planning and Monitoring meeting of state power secretaries, Nagaland, Madhya Pradesh and Himachal Pradesh inked agreements to ensure for all by 2019.
- Mr. PiyushGoyal said on the launch of “DEEP”, “India has enough capability to make up for shortfall due to lower hydropower generation, by thermal and gas-based plants.”
Expressing his concern over the poor electricity supply in some parts of the country Mr. Goyal said that due to the scarcity of water the Hydropower generation has come down particularly in states including Karnataka. “If states want power then they would get it provided transmission facility is in place and in a proper manner,” he added.
What are the Terms and Conditions in DEEP?
The Guidelines for short-term procurement of power has already been notified by Ministry of Power, Government of India with effect from April 1, 2016.
- It is mandatory for all the Procurers to procure short-term power by using this e-Bidding portal.
- The short-term procurement could be for a period of more than one day up to one year. Currently out of the total generation of around 91671.33 MUs, above 10% (9215.24MUs) is transacted through short term through bilateral and through power exchanges etc.
- The Guidelines exclude the Power Procurement from Power Exchange to introduce uniformity and transparency in power procurement by the DISCOMs and at the same time promote competition in the electricity sector.
Mr. Goyal said on the launch that DEEP, for now, will cover the short-term procurement of electricity but the Government is planning to expand the web portal to cover medium term and long term procurement of power.
Benefits of DEEP
- This e-Reverse auction process for will definitely result in overall reduction of cost of procurement of power thereby significantly benefiting the ultimate consumers due to the expected competition in Power Procurement.
- The common e-bidding platform with e-reverse Auction facility brings uniformity in the process of power procurement by providing a wider network including the stake holders in the power sector in nation-wide power procurement.
- The web portal will Enable Distribution Licensees to procure power in a short time.
- Bidders have the option to bid multiple bids from separate logins either from same or different sources.
- Bidders also can quote their best prices and need not match or bid lower price against the prevailing lowest Bidder.
The Mr. PiyushGoyal also said that if need be then he can talk to Chief Ministers of the states. The minister also informed that PTC India is developing an app for the trading of power on the mobile phone which would be launched within four weeks’ time.
- The portal will surely build confidence through transparency and efficiency in the procurement of power and will enhance the Electricity transmission in the country.