Average spot power price falls to two-year low of Rs 2.77/unit in September: IEX

The average spot power price fell to a two-year low of Rs 2.77 per unit in September owing to factors like low demand, improved coal supply and higher power generation, according to the Indian Energy Exchange (IEX). The price at Rs 2.77 per unit was 41 per cent lower than September 2018's rate of Rs 4.69, the exchange said.

"The day-ahead market (DAM) traded 3,488 MU (million units) with avg market in September. The average market clearing price was down by 41 per cent vis-à-vis price of Rs 4.69 per unit in September 2018 and 16 per cent on month-on-month basis.

"The average price at only Rs 2.77 per unit (was) lowest in the last 2 years," according to a statement by the IEX.

The reduction in prices was mainly on account of low demand, improved coal supply, extended monsoon and improved hydro power generation, it added.

The term-ahead market (TAM) traded 436 MU in September 2019 from 103 MU in September 2018 on the back of increased participation by the distribution utilities who leverage the market segment to manage the demand-supply variability close to the real-time.

"The inter-state transmission corridor congestion prevailed during the month specially towards the import of power to northern states due to shutdown of 765 KV Agra – Jhatikara & HVDC Champa – Kurukshetra line. Consequently, 'One Nation, One price' prevailed for only 18 days during the month," it said.

All-India peak demand at 173 GW in September 2019 declined 1 per cent over the demand of 175.6 GW in the same month last year. Energy met at 105 BU also declined 5 per cent year-on-year, according to data issued by National Load Dispatch Center (NLDC).

On September 25, the renewable energy certificates market at IEX saw total trade of 5,33,756 RECs, comprising 4,74,837 Non-Solar RECs and 58,919 Solar RECs.

The increase in prices in REC market was mainly on account of shortfall on the inventory/supply side which has been persisting since March 2019.