Indian Energy Exchange (IEX) has reported a 2-year low power prices during Sep’19, as factors like improved coal supply, extended monsoon and improved hydro power generation slow down electricity sales in short-term market.
The average power price of INR 2.77 per unit in Sep’19 was down 41% Y-o-Y from INR 4.69 per unit in Aug’19, which was also 16% lower on the month from INR 3.32 per unit in Sep’18.
Subdued demand for power was another reason for low prices in the market. Data provided by NLDC indicates that all India peak demand at 173 GW in Sep’19 had fell 1% over demand of 175.6 GW in Sep’18. In the similar vein, the energy met at 105 BU also declined 5% Y-o-Y from the year-ago month.
IEX had recorded a total power trade of 3,924 MU in Sep’19, down 27% M-o-M from 5,401 MU in Aug’19.
The day-ahead market traded 3,488 MU, whereas the term-ahead market traded 436 MU in Sep’19 up from 103 MU in Sep’18, on strength of increased participation by the distribution utilities.
IEX had noted that the power market continued to be favorably inclined to both the distribution utilities as well as the open access consumers in terms of price competitiveness as well as flexibility in power procurement.
However, a subdued coal supply reported by CIL this term has started taking its toll on power plant’s coal stock which was assessed at 17.131 MnT as on 8 Oct’19, sufficient for 11 days of power generation. It is expected that a spurt in power demand underlying with coal shortage would improve the short term electricity sales.
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