The average power spot prices jumped over 45% to Rs 5.94 per unit in the month of October on the energy exchange from Rs 4.08 per unit in the same month a year ago. According to a statement by Indian Energy Exchange (IEX), coal shortage, higher demand, lower wind and hydropower generation were the key factors that pushed the sales volume to highest ever in any month. IEX witnessed sales volume of 7,125 million units during the month, a rise of 22% from October and 63% from the same period last year.
The average market clearing price (MCP) registered a 26% increase to Rs 5.94 per unit from Rs 4.69 per unit in the month of September, and 45.5% rise from October 2017, the statement said. In October, both volume and power prices remained on the higher side, on account of high demand from eastern, western and southern states. Also, there were supply constraints like lower hydro and wind generation, as well as coal shortage, which affected the market, it added.
During the peak hours between 6 PM to 11 PM, the average spot power prices were the highest at Rs 7.30 per units. DAM (Day Ahead Market) traded 6,505 million units in October, an increase of 14% month-on-month and 59% from the corresponding period last year, and also the highest ever in any month. IEX said that ‘One Nation, One Price’ was realised for 17 days during the month.
It may be noted that overall power demand in the country is likely to go up with the Narendra Modi-led government is focusing to provide ‘24×7 clean and affordable power for all’ by March 2019.
Meanwhile, the energy exchange also launched its GST portal on October 31 for smooth handling of GST collection, invoicing and associated obligations of TCS and TDS, pertaining to trade in the Renewable Energy Certificates (RECs) market.