Economy

Electricity demand in spot market zooms but prices remain subdued

Our Bureau New Delhi | Updated on January 03, 2020 Published on January 03, 2020

Electricity demand in the spot power market rose in December 2019, but the average clearing price of power remained subdued.

A statement from the Indian Energy Exchange (IEX) said, “The electricity market at IEX recorded a total trade of 4,768 million units in December 2019. The market witnessed a 51 per cent (year-on-year compared to December 2018) increase in traded volumes.”

“The increase in traded volumes on the Exchange was largely due to surge in demand from the northern states as well as the southern States. The northern states experienced intense cold wave this month leading to an increase in peak demand in several states,”the statement added.

According to IEX, the day-ahead market traded 4,333 million units (MU) with an average market clearing price at ₹ 2.93 per unit compared to ₹ 3.3 in December 2018, an 11 per cent decline in price. In the day-ahead-market, total monthly sell bids were 10,195 MU while buy bids were 5,260 MU. Sell bids at nearly two times of the buy bids coupled with lower clearing prices signified that the market remained attractive for both the distribution utilities as well as open access buyers.

Published on January 03, 2020
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