IEX sees higher demand for electricity in October

Reflecting increased demand for power, the Indian Energy Exchange saw more number of buyers for electricity than sellers in October while the trading volume rose to 2.8 billion units.
"At 4.5 billion units the purchase bids far outstripped the sell bids at 3.8 BUs, clearly indicating that the market remained a seller's market (in October).
"The increased demand could largely be attributed to legislative elections in a few states as well as the festive season," IEX said in a statement today.
Last month, the average market clearing price was Rs 4.17 per unit, almost at par with the price seen in September.

About ten per cent fall in the average area clearing price was seen across all bid areas while in the Southern states, the area price increased by almost 50-70 per cent on account of congestion in the transmission network.
"Almost 286 million units were constrained (in October) due to unavailability of transmission corridor as compared to only 42 MUs lost in September.

"Persistent transmission congestion towards the Southern region and between the Southern states is a key reason for increased price of electricity in the South," the statement said.
Meanwhile, in October, IEX's spot power market traded 2.8 BUs of electricity. The amount is around ten per cent higher than 2.5 BUs seen in September.

On October 11, the day-ahead market witnessed trading of 131 MUs -- "highest ever on a single day since the inception of the exchange in 2008".
IEX is the country's leading power exchange.