BEE and AEEE Release State Energy Efficiency Preparedness Index

Spot power price in India declined to ₹3.30 (~$0.04766)/kWh in December 2018, an eight percent decline month-over-month (MOM). However, the spot price increased by 10 percent year-over-year (YoY).

“Compared to the same month in previous year, the spot price is still higher. Power demand has increased in the country and is set to increase further as a result of various electrification programs being run by the government. It is of utmost importance that we utilize available generation capacity to optimum in the short-term and plan better for the long term,” a market insider told Mercom.

In November 2018, the spot power price was ₹3.59 (~$0.05185)/kWh. This decline can be attributed to decrease in demand of power in the northern, western, and central states of India due to winter season. “One Nation, One Price” was realized for 23 days. On a daily average basis, 682 participants traded in the market in December 2018.

According to the Indian Energy Exchange (IEX), “The all India peak demand touched 163 GW, a 7 percent increase over the demand in December 2017.”



At IEX, the Day Ahead Market (DAM) and the Term Ahead Market (TAM) together traded 3,156 MU in December 2018, almost at par with 3,186 MU traded in December 2017. On the year to date basis, the electricity market at IEX traded 42,304 MU over 35,349 MU traded during the same period last fiscal, a growth of 20 percent.

DAM traded 3,059 MU, almost at par with the volume traded in December 2017. On the year to date basis, DAM traded 40,632 MU over 34,185 MU traded in the same period last fiscal, registering a growth of 19 percent. On a daily average basis, about 99 MU were traded in December 2018.

TAM traded 97 MU in December 2018, a 25 percent increase over December 2017. Meanwhile on the year to date basis, it traded 1,672 MU over 1,164 MU traded in same period last fiscal, registering a growth of 44 percent.

The market insider commented saying, “Right now, coal production is playing a spoilsport, the cost of imported coal has gone up drastically with many projects becoming non-performing assets (NPAs). Due to financial constraints, the entire capacity is not being utilized. We have ample capacity to satisfy demand.”

Talking about a separate market for renewable energy, the market insider said, “In the past, IEX had filed for Green DAM (GDAM), but the government refused. Now, the IEX has petitioned for GreenTerm Ahead Market (GTAM). The petition is still under consideration. Through GTAM, IEX will provide four contracts.”

When asked about the need for a separate market for green energy, the insider added, “Of late, almost 1,200 MW of green energy was sold by over 20 sellers. They sold this energy prior to the official commencement date and made a kill in the market as they had power purchase agreements (PPAs) for around ₹2.60-2.70 (~$0.037-0.039)/kWh. But this could not be accounted for renewable purchase obligation (RPO) as this was sold as normal power and not green energy.”

“If we consider the future, after a certain point if renewable energy is not brought out of just the PPA mechanism, the states will reach saturation and will stop procurement. A separate market for green energy will provide avenue to generators to sell their power and for distribution companies and other entities to buy or comply with their respective renewable purchase obligations,” added the market insider.

Saumy Prateek Saumy is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism & Mass Communication from the Manipal Institute of Communication at Manipal University. More articles from Saumy Prateek.