POSOCO
for Reforms in Power Sector
The government has decided
to set up Power System Operation
Corporation (POSOCO) as an Independent
Government Company.
In the process, the
institutional framework for an independent, secure and reliable power system
operation entity at the national level has been put in place as mandated under
the Electricity Act 2003.
More about POSOCO:
§ POSOCO operates the National Load Despatch
Centre (NLDC) and Regional Load Despatch Centres (RLDCs) which are also responsible for operating the vibrant electricity
market working in the country.
§ POSOCO is also designated as the nodal agency for major reforms in
the power sector such as the
1. Renewable Energy Certificate (REC) Mechanism,
2. Transmission pricing,
3. Short term open access in transmission,
4. Deviation Settlement Mechanism,
5. Power System Development Fund (PSDF), etc.
It has been decided to establish POSOCO as a
wholly owned Government of India Company under Ministry of Power thereby giving
a big thrust to bringing in further reforms in the power sector at the Central
level.
WHY THE NEED TO CREATE
POSOCO ?
- The
need for independent Government Company in light of the introduction of
competition as per Electricity Act 2003 which resulted in tremendous
growth in the Indian power sector by the private sector participation in generation,
transmission, distribution and trading.
- With
transmission coming under competition and multiple transmission licensees
operating, need was felt to ensure the independence and neutrality of the
system operation function.
- The Enquiry Committee set up following the July, 2012 grid disturbances, has recommended inter alia putting in place zero
tolerance systems including setting up of an Independent System Operator.
The decision also creates
an example for implementing similar reforms at the State level to ensure
independent system operation by the State Load Despatch Centers (SLDCs).
- The
strengthening of the institutional mechanism of System Operation would
help bring in innovation in the power sector as the RLDCs/NLDC operated by
POSOCO by achieving economy and efficiency in the
power system operation and facilitating implementation of various
Government of India policies for Power Sector as well as provide feedback to
the policymakers, regulators and planners.
MORAL
OF THE STORY :--
An independent company WILL ENSURE NEUTRALITY of the transmission
system operations.
