Maintaining its upward trend, India’s spot power prices soared in the month of October. This was the second month in a row which saw a reversal in the prevalent trend set during the previous months.
In October 2018, the recorded spot power price was ₹5.94 (~$0.081)/kWh, a 26 percent increase from the spot power price of ₹4.69 (~$0.063)/kWh recorded in September 2018.
Compared to October 2017, the spot power price increased by 46 percent, year-over-year (YoY), with the spot power price during the same time last year being ₹4.08 (~$0.056)/kWh.
According to the Indian Energy Exchange (IEX), pan India peak demand touched 171 GW, registering an increase of 10 percent over October 2017. In October 2018, total energy supplied was 113,995 million units (MU), an increase of 13 percent from 100,951 MU supplied in October 2017.
The electricity market at IEX – the Day Ahead Market (DAM) and Term Ahead Market (TAM) traded the highest ever monthly volume of 7,125 MU in October 2018 and registered a 22 percent increase over 5,829 MU traded in September 2018 and a 63 percent increase over 4,368 MU traded in October 2017.
The DAM traded 6,505 MU in October 2018 – the highest figure achieved so far in any month, registering an increase of 14 percent month-on-month (MoM) basis and increase of 59 percent YoY basis. On a daily average basis, about 210 MU were traded, the highest during any month.
The power prices and volume remained on the higher side throughout the month due to high demand of power from western, eastern and southern states as well as supply side constraints such as coal shortages, reduced hydro and wind generation affecting the market.
One Nation, One Price was realized for 17 days. The DAM experienced transmission congestion of 1 percent mainly in the import towards southern region. On daily average basis, 605 participants traded in the market during the month.
When contacted, a market insider said the reasons behind such high volume of trade are seasonal changes and our inability to prepare in advance. But, as the effect of monsoon continues to subside, the normalcy is gradually returning as coal mining has also started.
The market insider added, “If you will notice, it is clear that the total demand is lower than that of last month. In September 2018, peak demand had touched 176 GW, this month it is down to 171 GW. We need to be better prepared as a nation to counter the vagaries of weather for next time around.”
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.