New Delhi: The Covid-19 related suppression of demand in the power sector has strengthened group for increased power trading in the country to try to meet the short term needs of the consumers.
In August, when overall peak demand in the country fell six per cent over the same month last year and energy consumption declined two per cent, the electricity market at the country’s largest power exchange, Indian Energy Exchange (IEX), traded 5467 MU of power, witnessing a one per cent increase over the volume traded in August 2019.
What’s more, consumers of shorter-term power found the exchanges as viable media to trade in power as the average price of electricity there during August remained 27 per cent lower YoY at Rs 2.43 per unit. Most of the trading at this price was in day-ahead market at 4484 MU.
The attractive prices made electricity procurement from the exchanges an attractive proposition for both the distribution utilities and industries yielding significant savings, IEX said in a statement highlighting the details of the power market during the month.
The day-ahead market sees adequate availability of power with high sell side liquidity. The total sell bids at 10,123 MU were twice of the buy bids at 5 081 MU. The distribution utilities from Southern, Western and Northern states continued to leverage the exchange market to meet their short-term electricity requirements.
Moreover, as the Covid restrictions are eased, industries have been procuring power at attractive prices which has been facilitating revival of industrial growth.
As per the statement, ‘One Nation One Price’ prevailed during all 31 days of the month, meaning anyone in any part of the country could get power at same price as any other consumer in the country.
The trade in the term-ahead market at 115 MU increased 97 per cent on MoM basis, indicating continued acceptance of TAM contracts by the distribution utilites for meeting their short-term power requirements.