Average spot power price jumps to Rs 4.69/unit in Sep

Average spot power price surged 41 per cent in September to Rs 4.69 per unit as compared to Rs 3.34 per unit in August this year at Indian Energy Exchange (IEX), mainly due to higher demand, coal shortage and lower wind as well as hydro power generation.

"The average Market Clearing Price (MCP) at Rs 4.69 per unit registered 41 per cent increase over 3.34 per unit price in August 2018 and 15 per cent increase over Rs 4.09 per unit in same month (September) last year," Indian Energy Exchange (IEX) said in a statement.

According to the statement, the key reasons for increase in volume as well as prices in the day-ahead market included but not limited to increase in demand for power in eastern, western and southern states, low availability of coal with thermal power plants; reduced generation from wind and hydro based capacity, and scanty rainfall and dry weather in southern states in second half of the month.

However, the IEX said that One Nation, One Price was realised for 28 days in the month.

In the day-ahead market (DAM), the record high volume of 5,725 MU (million units) traded in September 2018 is an increase of 44 per cent month-on-month (MoM) basis and 40 per cent increase year-on-year (YoY) basis. The market achieved all time high record daily volume of 306 MU for delivery on 29th September, 2018, crossing the 300 mark for the first time.

On a daily average basis about 191 MU were traded (in September), the highest during any month, it added.

The all India peak demand touched 176 GW on September 18, 2018 registering 3 per cent increase over August 2018 and 11 per cent increase over September 2017, as per the NLDC (National Load Dispatch Centre) statistics.

The electricity market at IEX the day-ahead market (DAM) and term-ahead market (TAM) combined traded the highest ever monthly volume of 5,829 MU in September 2018 vis-a-vis 4,061 MU traded in August 2018 and 4,239 MU in the same month (September) last year.

The TAM traded 103 MU in September 2018, registering 19 per cent increase (month on month) basis and 32 per cent decline Y-o-Y (year on year) basis.

The Renewable Energy Certificate (REC) market trading session held on Wednesday featured a total trade of 16,03,446 RECs (16.03 lakh) about 2.16 times increase over trade of 5,07,811 RECs in August 2018 and 4.5 times increase over trade in September 2017.

The September 2018 trading Session saw trade in 2,44,401 non-solar RECs and record high trade of 13,59,045 solar RECs.