Priority Purchase
Introduction
Renewabl energy generation is exempted from merit order dispatch operation and is designated as “must run” in order to fully utilize the available generation of intermittent nature
Rationale
- Fully utilize the available generation.
Basic elements of design
Not considered as part of merit order stack while arriving or assessing the cost of power purchase.
Potential challenges
In low demand conditions, other sources are curtailed to absorb this high cost infirm power.
India experience
The concept is followed by all regulatory commissions.
