Power availability in the country is likely to improve in the coming days, as water levels in various reservoirs have started going up following the resumption of monsoon. According to the latest data obtained from the Central Water Commission (CWC), water storage at the 81 reservoirs across the country was 14 per cent of the total capacity of 151 billion cubic metres (bcm) of the reservoirs. It had risen to 11 per cent of the total capacity last week.
Accordingly, daily hydro power generation in the country has also increased by at least 12 per cent in the past one month to around 310 million units currently. Daily generation from NHPC Ltd, the country’s largest hydro power producer, alone has gone up by 11 per cent to 75 million units now as compared to last month. Similarly, keeping pace with this improving hydro power situation, the average price of power traded in the market has also started coming back to normal levels.
The latest data compiled by the Indian Energy Exchange (IEX) show the average price of electricity traded on it so far in the current month has slumped to Rs 4.89 per kilowatt hour (one kilo watt hour is one unit). Power was traded over 20 per cent higher at an average of Rs 6.19 per kilowatt hour last month when the reservoir levels were drying up as a result of delayed monsoon. Total power traded at the IEX has increased by over 25 per cent from 324 million units in May to 408 million units traded in the current month. IEX alone accounts for more than 90 per cent of the electricity traded at the two power exchanges in the country.
The moderation in power prices due to resuming monsoon is set to reduce the subsidy burden of states which otherwise have to procure power at a high cost to tide over the electricity crisis.
The downward spiral in the prices could also impact profit margins of merchant power generators as they account for a major chunk of the power traded at the exchange and earn profits in the lean period.
Heat wave in the northern region and a delayed monsoon had pushed up the peak demand for power to over 111,000 Mw in April-June period this year, around 5,000 Mw higher as compared to the same period last year. This increased demand had pushed up the prices of power traded at the exchange to as high as Rs 12 per unit.
Accordingly, daily hydro power generation in the country has also increased by at least 12 per cent in the past one month to around 310 million units currently. Daily generation from NHPC Ltd, the country’s largest hydro power producer, alone has gone up by 11 per cent to 75 million units now as compared to last month. Similarly, keeping pace with this improving hydro power situation, the average price of power traded in the market has also started coming back to normal levels.
The latest data compiled by the Indian Energy Exchange (IEX) show the average price of electricity traded on it so far in the current month has slumped to Rs 4.89 per kilowatt hour (one kilo watt hour is one unit). Power was traded over 20 per cent higher at an average of Rs 6.19 per kilowatt hour last month when the reservoir levels were drying up as a result of delayed monsoon. Total power traded at the IEX has increased by over 25 per cent from 324 million units in May to 408 million units traded in the current month. IEX alone accounts for more than 90 per cent of the electricity traded at the two power exchanges in the country.
The moderation in power prices due to resuming monsoon is set to reduce the subsidy burden of states which otherwise have to procure power at a high cost to tide over the electricity crisis.
The downward spiral in the prices could also impact profit margins of merchant power generators as they account for a major chunk of the power traded at the exchange and earn profits in the lean period.
Heat wave in the northern region and a delayed monsoon had pushed up the peak demand for power to over 111,000 Mw in April-June period this year, around 5,000 Mw higher as compared to the same period last year. This increased demand had pushed up the prices of power traded at the exchange to as high as Rs 12 per unit.
Source: Business Standard
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