Average spot power price jumps 65%

New Delhi: Average spot power price rose by 65 per cent to Rs 4.06 per unit in March compared to the year-ago month at Indian Energy Exchange (IEX) mainly due to increase in demand on account of rise in temperature and revival of economic activities.

"The day-ahead market (DAM) traded 6,549 MU (million units) volume recording a significant 65 per cent YoY (year on year) growth. The average monthly price at Rs 4.06 per unit during the month saw a 20 per cent MoM (month on month) increase," an IEX statement said.

According to IEX data, average spot power price in DAM was Rs 2.46 per unit in March 2020 and Rs 3.39 per cent in February 2021. The IEX explained that the increase in price was mainly due to the increase in demand for electricity during the month due to sharp rise in temperature, revival of economic and commercial activities.

During 2020-21, the DAM on the IEX, traded 60,416 MU and registered 23 per cent YoY (year on year) growth. The day-ahead market saw ample availability of power during the year with sell-bids at 1.94X of the cleared volume. Even though the power consumption over the last six months revived significantly accompanied by the growth in the industrial and economic activities across the country, the average yearly price for DAM at Rs 2.82 per during the fiscal saw 6.2 per cent YoY decline.

The electricity market at IEX achieved an all-time high volume of 8,248.52 MU in the month of March 2021 surpassing all the previous milestones. The robust volumes led to a 92 per cent YoY growth in electricity market during the month, it added.

The market faced transmission congestion on the inter-state transmission network due to which 24MU was lost during the month, representing 0.03 per cent of total traded volume.