India-Sales of electricity through short term transaction has increased 16% Y-o-Y to 145.18 BU (Billion Units) in CY18 compared with 124.99 BU in CY17, as per the data provided by CERC.
Major portion of electricity sales in India are executed by the distribution companies through long-term contracts. However, short term electricity transactions also play a major role by balancing the short-term mismatch in supply and demand.
In general, short-term transactions of electricity refer to the contracts of less than one year period, for electricity transacted (inter-State & intra-State) through trading licensees and directly by the distribution licensees, Power Exchanges (Indian Energy Exchange Ltd (IEX) and Power Exchange India Ltd (PXIL), and Deviation Settlement Mechanism (DSM).
During CY18, volume of electricity sold through short-term contracts had accounted for 12% of the country’s net power generation of 1244.97 BU (excluding generation from renewable and captive power plants).
Of the total short-term transactions in CY18, bilateral constitutes 48% followed by 35% through transactions on power exchanges and remaining 17% through DSM.
Electricity Transactions in Dec’18:
Volume of electricity transaction though short-term rebounded with a rise in monthly power generation during Dec’18. Total quantity was marked 12% higher on the month at 11749.8 MU (Million Unit) in Dec’18 against 10459.33 MU in Nov’18.
There was an appreciable rise in volume transacted through bilateral contracts and DSM, which were marked 9% and 70% higher on the month at 5886.3 MU and 2804.5 MU respectively in Dec’18.
While electricity traded on power exchanges remain lower on the month, recorded at 3059 MU in Dec’18.
Price of Electricity Transacted: Price of electricity sales across all the modes of transaction (except in PXIL) had came down during Dec’18.
Source: CERC
Major Participants: During the month, top 5 electricity selling regional entities were Punjab, Delhi, Haryana, Sembcorp Gayatri Power and Essar Power. While the top 5 electricity purchasing regional entities were Madhya Pradesh, Jammu and Kashmir, Tamil Nadu, Uttarakhand and Gujarat.
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