In June 2018, spot power price stood at ₹3.73 (~$0.054)/kWh. This recorded price proved to be a trend reversal of sorts for spot power prices over the past few months. In June 2018, the spot power price was over 20 percent less than the ₹4.67/kWh spot price recorded in May 2018.
However, compared to the spot power of price of ₹2.59/kWh recorded in June 2017, the present figures show a 44 percent increase year over year (YoY) due to increased power demand.
According to the Indian Energy Exchange (IEX), in June 2018, peak demand touched 170 GW, which was about 13 percent higher than highest peak demand of 150 GW recorded in June of last year.
In June 2018, IEX traded 5,052 million units (MUs) in the electricity market (both day-ahead and term-ahead markets combined), while in May 2018, the electricity traded was 5,169 MUs.
The key factors for the increase in volume were: the peak summer season, low hydro generation, and a slow pickup in wind power generation in southern and western states which lead to an increase in demand from the distribution companies as well as the bigger consumers.
One Nation, One Price was realized for 22 days during June 2018. The day-ahead market (DAM) experienced transmission congestion in the 14.5 percent time blocks through the month, mainly in the import of power in northern states due to the outage of Champa–Kurukshetra transmission line. On a daily average basis, 646 participants traded in the DAM.
The term-ahead market (TAM) traded 87.63 MUs in June 2018, mainly in the intra-day and day-ahead contingency market segments, registering a 213 percent increase over 28 MUs traded in June 2017. When compared to May 2018, in which 253 MUs were traded, this is a 65 percent decline.
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.