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Electricity Price at IEX Sees Significant Correction From Rs 14 per unit to Rs 3.25 per unit in 2 Weeks

October 30, 2021. By News Bureau

The power prices in the Exchange electricity market- the Day-ahead and the Real time market have witnessed a significant correction in the last 7 days supported by measures initiated by the government to address the various supply related challenges.

As per the data available on the IEX website, the average price of the electricity in the last 7 days (from 23 to 29 October’21) in the two key electricity market segments have corrected significantly with avg. day ahead market price at 3.75 per unit and average real time market price at 3.03 per unit.

It is worth noting that about two weeks back, the Exchange prices were about Rs 14 per unit.

Some of the reasons that have helped in the correction of power prices at the Exchange are as follows:

There has been a considerable improvement in availability of the domestic coal at the power generating stations. The coal stock at power generating stations which was about 7.3 million tones on 12 October’21 has risen to 9.4 million tones as on 27 Oct’21 with stock for more than 5 days.
On 12 October 21, there were 79 power plants which had less than 4 days of coal-stock. This number for power plants has come down to 60 as on 27 October 21, indicating significant improvement.
The onset of winters in Northern states has resulted in minimum temperature hovering around 16-degree C. The average daily energy consumption during the last 7 days has dropped to 3579 million units from 3864 million units in the second week of October (registering a drop of 7%), whereas the peak demand also stands corrected to 168 GW from 172 GW in the second week (drop of 2%).

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