Average spot power price dips 21 pc to Rs 2.46/unit in March at IEX

Average spot power price fell over 21 per cent to Rs 2.46 per unit in March at Indian Energy Exchange (IEX) compared to Rs 3.12 per unit in the same month last year due to lower demand during lockdown.

The government has imposed a three-week lockdown till April 14 to contain COVID-19. This has caused lower demand from industrial and commercial units.

"The average market clearing price in DAM (day ahead market) at Rs 2.46 per unit saw a noteworthy decline of 21 per cent this month (March) over the price of Rs 3.12 per unit in March 2019, offering the distribution utilities and discoms a compelling opportunity to reduce their financial burden," an IEX statement said.

In March 2020, the electricity market at IEX saw a trade of 4,291 MU (million units). While the DAM traded 3,971 MU last month, showing a growth of 18 per cent year-on-year, the Term Ahead Market (TAM) traded 320 MU and recorded 30 per cent growth. The southern distribution utilities continued their preference for TAM contracts.

The total sell bids in DAM were 12,207 MU and buy bids were 4,545MU, showing low demand. The sell bids being over 2.5X the buy bids imply surplus power availability on the platform.

One Nation One Price prevailed for 24 days during the month, it said.