The average spot price of electricity plunged 4 per cent to Rs 2.56 per unit in December 2015, as compared to the preceding month at India Energy Exchange.
"At average Market Clearing Price (MCP) of Rs 2.56 per unit in December'15, spot power market at IEX saw increased trade...In December, MCP dipped by 4 per cent over the previous month," India Energy Exchange said in a statement.
In South, area prices dipped to an extent of 20 per cent, with increase in generation within the region as well as enhanced availability of transmission corridor between rest of India and South, it said.
Low prices on Exchange present immense opportunity to state utilities to optimise their power portfolio and bring down their cost of procurement, it said.
"With purchase bids at 3,397 MUs (4,566 MW) and sell bids at 4,981 MUs (6,694 MW)-almost similar to last month, about 2,987 MUs were traded in December, about 9 per cent above the previous month. On an average daily basis, about 96 MUs were traded in December," it said.
With enhanced availability of transmission corridor in December, only 54 MUs were curtailed, almost half of the 116 MUs lost in November.
Easing of congestion can be attributed to the Government laying increased emphasis on building transmission, aiming at one nation, one grid and one price, it said.
"In fact, on December 29, after several years, the spot market was cleared at a single price of Rs 2.3 per unit across India, a remarkable day in the context of power market," it said.
On an average, 1,042 participants traded in the day ahead of spot market on a daily basis in December.
