Average spot power price falls 2 pc to Rs 3.38 a unit in July

Average spot power price dipped 2 per cent to Rs 3.38 per unit in July at the Indian Energy Exchange (IEX) as compared with Rs 3.46 per unit a year ago.

"The average market clearing price (MCP) in the day-ahead market was Rs 3.38 per unit it recorded decrease of 2 per cent on y-o-y (year-on-year) basis from Rs 3.46 per unit in July 2018," the IEX said in a statement.

Low price coupled with greater certainty and predictability in procurement continue to make compelling proposition for the power distribution companies (discoms) as well as open access consumers to step up their procurement through the IEX, it added.

The company added that the day-ahead market alone saw an increase of 19 per cent y-o-y in volumes, while the term-ahead market (TAM), which is leveraged by the discoms to manage demand-supply variability close especially in the scenario of high renewable energy concentration in the grid, increased 290 per cent on the yearly basis.

On an all-India basis, peak demand met touched 175 gigawatt (GW) registering a four per cent increase on a y-o-y basis, while all-India energy supply stood at 117 billion units increased 6 per cent y-o-y, according to data from the National Load Dispatch Centre.

The overall electricity market at the IEX recorded a 27 per cent increase on a y-o-y basis and a 15 per cent increase on a month-on-month basis in July 2019.

The increase in volume corroborated well with increase in demand for electricity in the select eastern, western and southern states. The discoms across these states preferred the day-ahead and the term-ahead electricity market on exchange to leverage the competitive price discovery, coupled with the benefit of flexible and predictable procurement since 'One Nation and One Price' prevailed on all 31 days during the month of July, it added.