Higher hydropower generation and easing of inter-state power transmission network led to a drop of 7 per cent in average spot market price of electricity to Rs 2.16 per unit at Indian Energy Exchange (IEX) in July.
"The average Market Clearing Price (MCP) in July was Rs 2.16 per unit, 7 per cent less over Rs 2.31 per unit in June '16," IEX said in a press statement on power trade on its platform in July.
According to the statement, increased hydel generation due to the monsoon season and easing of inter-state transmission congestion were the key factors that led to price reduction.
Average Area Clearing Price (ACP) - the price at which settlement takes place, came down across all states and varied from Rs 2.10 per unit to Rs 2.35 per unit during the month.
This July, IEX said, 3,581 MUs (million units) were transacted through IEX Day-Ahead Market, the highest ever. This was higher by 14 per cent over 3,147 MUs traded in June 2016.
On a daily average basis, close to 116 MUs were traded, 10 per cent increase over 105 MUs traded last month. The market saw average daily purchase bids of 5,360 MW and average daily sell bids of 9,061 MW. With the sell bids far exceeding the buy bids, the market remained favourable to buyers.
Due to higher transmission and generation availability in South, for 8 days the market cleared at single-price through the day, the highest ever in a month. In the first half of the month, there was very little transmission congestion across corridors. However, in the second half of the month, the transmission congestion was witnessed in Southern and Northern regions, it said.
About 68 MUs were lost due to transmission congestion in July as compared to 100 MUs in the previous month (June). On a daily basis, about 2 MUs were lost, it added.
