To bring transparency in power bidding and to achieve the tariff lowest possible cost the government assigned MSTC to create an e-auction platform for power bidding. The government has also asked power utilities to sign power purchase agreements (PPAs) with power generators after selecting them through reverse auctions.
MSTC formerly known as Metal Scrap Trade Corporation Limited, a Government of India Company is engaged in domestic and international trading activity for over 30 years.
“MSTC has been assigned to develop a national e-auction portal for establishing power purchase agreements by power distribution companies and licensees,” said SK Tripathi, Chairman and Managing Director of MSTC.
“As a national portal, the system is expected to create greater opportunity for the power buyers and sellers and power tariff is expected to become cheaper and more affordable to consumers,” He added.
If a state needs to buy power they will now have to invite bids from power suppliers no matter whether the tenure is short term, medium or long term. The bidding would be conducted through e-auction where the buyer will set the maximum price and the bidder who will offer power at the lowest price would be the winner and then they will be required to sign the power purchase agreement with the state utility.
“These agreements can be for as short as a month to 25 years. MSTC hopes to ready the short-term platform for e-auction by January. The one for medium and long term is expected to be ready in three more months,” said SK Tripathi.
Power purchase contracts for more than 15 days and up to one year will be handled through Short term platform for e-auction that is expected to become operational by the end of January 2016.