The Government has decided to set up Power System Operation Corporation (Posoco) as an independent public sector company.
Posoco operates the National Load Despatch Centre and the Regional Load Despatch Centre, which are responsible for operating the electricity market in the country. It is also the nodal agency for major reforms in the power sector such as the Renewable Energy Certificate mechanism, transmission pricing, short-term open access in transmission, deviation settlement mechanism and the power system development fund.
“With transmission coming under competition and multiple transmission licensees operating, the need was felt to ensure the independence and neutrality of the system operation function,” according to a statement from the Ministry of Power. Posoco will become a wholly-owned Government of India company under the Power Ministry. The statement added the decision creates an example for implementing similar reforms at the state level for independent operation by the State Load Despatch Centres.
The Ministry expects the move to strengthen the institutional mechanism of Posoco and help bring innovation in the power sector.
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