Technical Report (including the GAMS Source Code) World BankEnergy and ExtractivesPractice February 2026 TABLE OF CONTENTS EXECUTIVE SUMMARY.........................................................................................................................iv 1.1 Context.........................................................................................................................................11.2 Overview of SECED.......................................................................................................................31.3 SECED Dispatch Function:Objective..............................................................................................41.4 SECED Planning Function:Objective.............................................................................................61.5 SECED Functionality......................................................................................................................71.5.1 SECED Dispatch: Functionality...............................................................................................71.5.2 SECED Planning: Functionality...............................................................................................81.6 Understanding the Emission Prices and Revenue Calculation.......................................................9 2.SECED APPLICATION FOR EMISSIONS REDUCTION AND TRADING..........................................13 2.1SCED vs SECED....................................................................................................................132.2Cost of CO2 Reduction.........................................................................................................142.3Indicative Estimates of Cost of CO2Emissions Reduction.....................................................152.4Understanding the Changes in Plant Utilization...................................................................20 3.CONCLUDING REMARKS AND WAY FORWARD..........................................................................274.REFERENCES................................................................................................................................29ANNEXURE A: ADDITIONAL COST AND EMISSIONS DATA................................................................32A.1 Trends of Emission factor vis-à-vis Variable cost.........................................................................32A.2 POSOCO SCED Data from May 2019..........................................................................................35ANNEXURE B: SECED MATHEMATICAL FORMULATION....................................................................37ANNEXURE C: SECED SOURCE GAMS CODE......................................................................................41 LIST OF FIGURES Figure 1 CO2emissions from power generation in India (including captive power plants).......................1Figure 2 SECED dispatch and planning functions to meet emissions constraint......................................6Figure 3 Variable cost vs emission trade-off: SCED vs SECED...............................................................13Figure 4 Marginal CO2abatement curve for Maharashtra.....................................................................14Figure 5 Energy map of India.................................................................................................................16Figure 6 Cost vs emissions trade-off curve.............................................................................................17Figure 7 Relative increase in system cost................................................................................................17Figure 8 Average Cost of CO2Reduction (Rs/t) for 5% (or 60 mt) Reduction: All India...........................18Figure 9 Shadow price of CO2for different levels of CO2reduction.......................................................19 LIST OF TABLES Table 1 Dispatch and revenue analysis: Unconstrained solution with 500 t cap.....................................11Table 2 Dispatch and revenue analysis: Constrained solution with 350 t cap.........................................12Table 3 Cost vs Emission trade-off for Maharashtra: Aug 9–Sep 9, 2024 SECED analysis....................15Table 4 Comparison of CO2emissions reduction scenarios: All India.....................................................16 EXECUTIVESUMMARY Theintroduction of Security Constrained Economic Dispatch(SCED)by the National Load DespatchCenter(NLDC)in 2019has yielded significant economic savings as well assmoother operation ofinterstate generators.As India embarks on introduction of the Indian Carbon Market (ICM), it is time toconsider extension of the SCED framework to include emission constraintsto target the most economicsources of emissions reduction within the power sector. Although thetiming ofinclusion of the power SECED can be useful inenhancingshort term (namely,real-time and day-ahead)dispat