New Delhi: Spot market power prices have peaked at Rs 9 per unit, a three-year high, while the average price on India Electricity Exchange also rose to Rs 5 per unit on low electricity supply. The prices are expected to remain high until the warm weather conditions recede.
Industry sources said while the power demand remained at the same level as last year, supply was low due to lesser generation from wind and hydropower plants.
Sources said wind based generation dropped by 70% due to unfavorable weather conditions across states like Tamil Nadu, Gujarat and Madhya Pradesh. The hydro generation declined due to less rainfall in southern and western states.
Data available with India Energy Exchange showed that the trading volume stood at an all time high of 183 million units, while the prices peaked to Rs 9.2/unit on Tuesday across India for a 15-minute slot. The maximum clearing prices on Wednesday was Rs 7.90/unit.