Availability-based tariff

[1] ABT Mechanism in Electricity sector in India is adopted since the year 2000 and in a few other countries for pricing bulk power across various stakeholders.

Deregulation and competition has facilitated participation of private sector on large scale in electricity generation, transmission and distribution.

[5][6] There is a need of well represented Electric Reliability Organization to involve all the grid participants for framing guidelines for power system operation and accreditation which is presently looked after by the CEA Bulk power purchasers can buy electricity on daily basis for short, medium and long term duration from reverse e-auction facility.

In reverse auction trading, the buyers pay a very high price/KWh (many times more than the cost of power from the diesel generator sets) for the incremental purchases.

The SAIDI (System Average Interruption Duration Index) is commonly used as a reliability indicator by electric power utilities.

During the fiscal year 2014–15, 1,043 billion KWh of electricity (three times that of National Grid) was supplied and met 138,215 MW maximum peak load.

The standby generator / captive power owner would be paid for providing grid reserve ancillary services.

[23][24] The purpose of smart grid is to supply required electricity at optimum cost with reliability to the final consumers.

[49] The available gas should be stored up to rated pressure in the pipe grid for generating power during peak demand hours on a daily (or more) basis.

[55] Initially, the company has identified Dahej, Hazira and Kakinada as delivery points and will subsequently include Dhabol, Kochi, Ennore and Mundra terminals.