New Delhi: Spot power price on Friday touched over nine-year high of Rs 16.49 per unit in the day ahead market (DAM) on Indian Energy Exchange (IEX) for supply on Saturday, mainly on account of higher demand.
The spot power prices have seen an upward trend in the DAM at IEX since last Sunday when it touched to a new high of Rs 14.09 per unit for supply on Monday, due to lower wind and hydropower generation coupled with coal shortages at power plants.
"Spot power price for supply touched over 9-year high of Rs 16.49 per unit in trading at IEX on Friday. Even the average spot power price was Rs 6.67 per unit at IEX today," a source said.
According to the IEX data, the previous high was recorded at Rs 17 percent unit in August 2009. A total of 306 MU (million units) were sold for supply on Saturday, which is the highest ever volume of power sold on the exchange since it came into existence in 2007.
In the DAM trading session concluded Friday at IEX, there were 363 buy bids against 335 sell bids.
Earlier in the day commenting on soaring spot power prices at IEX, Power Secretary A K Bhalla has said, "This is the time (in the year) when wind energy suddenly goes down and hydro also starts declining and that is where some constraints always come in. We were not able to build coal stocks in power plants especially in northern states".
Yesterday, the spot power price had touched nine year high of Rs 15.37 per unit for supply on Friday. A total of 293 MU were sold for supply on Friday, which was the highest ever volume of power sold on the exchange since it came into existence in 2007.
The spot power price had touched Rs 14.25 per unit in the DAM trading at the IEX held Wednesday for supply on Thursday. There were buy bids for 386 MU against sell bids of 309 MU. As much as 290 MU were sold for supply on Thursday.
Experts said lower wind and hydropower output coupled with persistent coal shortages at power plants led to spike in the spot price.
After the shortage of coal at independent power plants (IPPs) and captive power plants(CPPs), consumers in southern part of the country and captive users made a beeline at IEX.
The spot power price touched a high of Rs 14.09 on September 17 due to same reasons. The demand was 265 MU while the supply was 200 MU.
In May this year, the spot power price had touched about five-year high of Rs 11.41 after starved CPPs started buying power at exchanges.
In the same month, the government decided to augment coal supplies to centre/ state power plants and IPPs from May 19 to June 30 to overcome shortage of the dry fuel and check power crisis.
The source said CPPs are still grappling with the issue of coal shortage at their power plants.
CPPs generate electricity for their own manufacturing facilities like steel, cement and others.
Power Minister R K Singh had Thursday asked state power generators like NTPC and DVC to strengthen their coal mining wing and secure more coal mines noting that supply of the dry fuel to power plants is still a concern.
Firstpost is now on WhatsApp. For the latest analysis, commentary and news updates, sign up for our WhatsApp services. Just go to Firstpost.com/Whatsapp and hit the Subscribe button.
Updated Date: Sep 28, 2018 19:10:24 IST