Unused thermal capacity, rising green power may cool spot energy prices

The revival in power demand spurred volumes growth in electricity trading at Indian Energy Exchange

High spot energy prices are unlikely to sustain in the medium terms as unutilised thermal power capacity and a spike in generation from renewable sources will weigh on.

A report on the outlook for the power sector by Icra says that high energy demand coupled with domestic coal shortages fuelled a surge in spot power tariffs in recent months.

Sabyasachi Majumdar, Group Head & Senior Vice President, Icra, said, “The increased demand for electricity coupled with the shortfall in coal supply from domestic sources, has led to higher dependence on costlier coal imports in FY18 and FY19. The higher dependence