Average spot power price to be less than Rs 3.5/unit in May

Average spot power price is unlikely to breach the Rs 3.50 per unit level in May on account of sufficient coal stock for thermal plants and enhanced supplies from clean energy sources, according to experts.

"Despite higher peak demand of 178 GW, average spot power prices at exchanges would not be more than Rs 3.5 per unit during May because of better supplies particularly from clean energy sources like wind, solar and hydro. Besides, there is no shortage of coal this month for thermal power generation," an industry expert told PTI.

According to the Central Electricity Authority (CEA), out of 127 thermal power plants monitored by it, two power stations had super critical coal situation as on May 9, 2019. These two plants had coal stock of less than four days and there was only one plant which had critical coal situation with stock of less than a week. So, dry fuel shortage is not affecting power generation.

Indian Energy Exchange Director Rajesh K Mediratta told PTI that average spot power price at IEX was Rs 3.3 per unit till May 10, 2019, which was far lower than Rs 4.67 per unit in May 2018.

Elaborating further, he said, "The key reasons for rise in volume and price in May last year were increase in demand due to summer, lack of adequate availability of coal, low hydro generation, slow pick-up in the wind power generation in southern and western states."