The demand for power in the spot market fell by 275 million units (MU) to 3,684 MUs in December 2016 against November 2016, according to data released by the Indian Energy Exchange (IEX).

This resulted in the exchange trading 300 MU lesser power, bring the total cleared volumes to 3,101 MUs. The western and north – eastern States emerged as the net sellers, while the northern, eastern and southern States were net buyers for the month of December. IEX is the India’s largest spot market for power and oversees 97 per cent of all spot power trade in the country.

The average Market Clearing Price for December was ₹2.32 per unit, same as the previous month and about 10 per cent less over prices of ₹2.56 per unit in December, 2015.

According to an IEX statement, “With the average daily purchase bid of 119 MUs, and average daily sell bids of 229 MUs, the market remained highly liquid and thus the prices were buyer friendly.”

IEX noted that the unavailability of transmission corridor continued to be a deterrent and led to market splitting and price variations.

As a result of congestion 4.4 MUs were lost on a daily average basis. On an average, 100 MUs were traded in December, lower than the 113 MUs in November and 116 MUs in October last year.

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