November 04, 2016

IEX spot power rate hits 6-month high in Oct at Rs 2.46

Business Standard

The average spot power price at the Indian Energy Exchange touched a six-month high of Rs 2.46 in October due to higher demand, particularly from industrial units and southern states.

"The spot price of electricity has been on a slightly higher side in October also due to high demand, particularly from industrial units and southern states," an IEX official told PTI.

The average power price was recorded at Rs 2.91 per unit in April this year. It was on the lower side thereafter at Rs 2.32, Rs 2.31, Rs 2.16 and Rs 2.17 in May, June, July and August, respectively.

It picked up again to Rs 2.43 per unit in September this year. The spot power price was the highest in six months at Rs 2.46 per unit in October.

"October saw attractive and competitive price in IEX Spot Power Market with average Market Clearing Price (MCP) at Rs 2.46 per unit, 19 per cent less than MCP of Rs 3.03 per unit in the same month last year. The average Area Clearing Prices (ACP) ranged from Rs 2.40 to Rs 2.75 per unit across regions," IEX said in statement.

The market remained liquid with average daily sell bids of 235 MUs (million units) and purchase bids of 139 MUs. During October this year, 3,609 MUs were traded which on a daily average basis is 116 MUs, about 10 per cent increase over 105 MUs traded in the same month last year, it said.

The open access consumers (industrial units) accounted for almost 60 per cent of the cleared volume, mainly due to competitive price.

However, the congestion on the inter-state transmission network increased, affecting import of power in the Southern and Northern regions.

About 3.6 MUs were lost on a daily average basis. The Southern corridor was congested about 42 per cent of the time and the congestion was mainly due to increase in demand for power in South.

Congestion in the Northern corridor was experienced for about 16 per cent of the time during the month, it said, adding that the Term-Ahead Market remained vibrant and over 93 MUs were traded -- about 220 per cent increase over 29 MUs traded last month -- owing to increase in demand due to the festive season.

Uniform rate prevailed for three days - October 7, 8 and 9 -- in line with the One Nation, One Grid and One Price motto of the Government.

The Eastern and Western States were selling power in October'16 and the sale quantum of these regions was 2,392 MUs. The Northern and Southern regions were buying power through the month and the buy quantum of these regions was 2,265 MUs, it added.