Spot Power Price Declines by 7% to ₹3.46/kWh in July but Still Higher than Solar Tariffs
Onset of monsoon dampens power demand
The spot power price has continued its slump into yet another month. In July 2018, the recorded spot power price was ₹3.46 (~$0.0505)/kWh but was still higher than recent tariffs quoted in solar auctions. The price in July was seven percent lower than the spot power price of ₹3.73 (~$0.054)/kWh recorded in June 2018.
However, compared to the spot power of price of ₹2.49 (~$0.036)/kWh recorded in June 2017, the present figures show a 39 percent increase year-over-year (YoY).
According to the Indian Energy Exchange (IEX), the arrival of the monsoon over various parts of the country in July 2018 dampened the power demand as well as prices compared to June 2018. Peak demand across all of India reached 168 GW in July 2018—around a one percent decline from June 2018, in which 170 GW peak demand was registered.
In July 2018, IEX traded 4,148 million units (MU) in the electricity market both day-ahead and term-ahead markets combined. In June 2018, the electricity traded was 5,053 MU. The day-ahead market (DAM) traded at 4,028 MU in July, registering a decline of 19 percent over 4,965 MU in June 2018. Compared to July 2017, the DAM showed a 10 percent increase.
Around 130 MU were traded during the month with average daily sell bids at 237 MU and average daily buy bids at 161 MU. One Nation, One Price was realized for 21 days. The DAM experienced minor transmission congestion of 6 percent, mainly in import of power toward the northern region.
In July 2018, two solar generators with sizes up to 6.5 MW sold 0.55 MU in the DAM. On a daily average basis, 659 participants traded in the DAM during the month.
The term-ahead market (TAM) traded 121 MU in July 2018 in the intra-day and day-ahead contingency market segments. The TAM registered a 37 percent increase over 87.63 MU traded in June 2018 and a 102 percent increase over 60 MU traded in July 2017.
Saumy is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism & Mass Communication from the Manipal Institute of Communication at Manipal University. More articles from Saumy Prateek.