MERIT App and e-Bidding Portal

Information about MERIT App and e-Bidding Portal

1) Initiative of : Ministry of Power

2) MERIT : Merit Order Despatch of Electricity for Rejuvenation of Income and Transparency

3) It would help the states to select Independent Power Producers (IPPs) for procurement of power by transferring their domestic coal under the scheme of flexibility in utilization of domestic coal.

4) How MERIT will help?

• Promotes the vision of ‘Minimum Government and Maximum Governance’ through ‘Speed, Skill and Scale’.


• It would result in optimum utilization of Coal


• It would increase the transparency and accountability.

5) Advantages of MERIT app: 

• Empowers the consumer. 


• Promotes participative governance. 


• Transparency in information dissemination relating to marginal variable cost and source wise purchase of electricity. 


• Promotes economy and efficiency in operation. 


• Optimizes the procurement costs. 


• Facilitates renewable integration and handling of the variability and uncertainty of renewable's.

• Helps understand utility portfolio and its complexity

• Indication of supply side reliability and adequecy

6) Tariff Policy, 2016 provides that the States/DISCOMs shall follow merit order for procurement of power and there should be uniformity in merit order mechanism. 

7) The web portal and mobile apps for Merit Order Despatch of Electricity (MERIT) have been developed in association with POSOCO. 

8) The app displays extensive array of information regarding the merit order such as:

i) daily state-wise marginal variable costs of all generators, 

ii) daily source-wise power purchases of respective states/UTs with source-wise fixed and variable costs, energy volumes and purchase prices. 

The app also gives information regarding reasons for deviation from merit order such as must run conditions, transmission constraints etc.

9) e-Bidding Portal:

a) It has been designed to facilitate States in inviting bids for procurement of power from the prospective IPPs in transparent and fair manner. The successful bidder shall be selected through e-Reverse Bidding process.

b) Developed by: Ministry of Power, along with PFC Consulting Ltd and MSTC Ltd,