Spot power price touched over nine-year high of Rs 14.25 per unit in the day ahead market (DAM) on Indian Energy Exchange for supply on Thursday, mainly on account of higher demand.
"Spot power price for supply on Thursday touched over 9-year high of Rs 14.25 per unit in trading at Indian Energy Exchange (IEX) on Wednesday," a source said.
According to the IEX data, the previous high was recorded at Rs 17 per unit in August 2009.
Experts believe that spot power price soared mainly due to higher demand and lower supplies as there were buy bids for 386 million units (MU) against sell bids of 309 MU in the trading held on Wednesday at IEX.
As much are 290 MU were sold for supply on Thursday, which is highest ever volume of power sold on the exchange since it came into existence in 2007.
They said lower wind and hydro power output coupled with persistent coal shortages at power plants led to spike in the spot price.
After the shortage of coal at independent power plants(IPPs) and captive power plants(CPPs), consumers in southern part of the country and captive users made a beeline at IEX.
The spot power price touched a high of Rs 14.09 on September 17 due to the same reason. The demand was 265 MU while the supply was 200 MU.
In May this year, the spot power price had touched about five-year high of Rs 11.41 after starved CPPs started buying power at exchanges.
In the same month, the government decided to augment coal supplies to centre/ state power plants and IPPs from May 19 to June 30 to overcome shortage of the dry fuel and check power crisis.
The source said CPPs are still grappling with the issue of coal shortage at their power plants.
CPPs generate electricity for their own manufacturing facilities like steel, cement and others.
Earlier in the day, Power Minister R K Singh asked state power generators like NTPC and DVC to strengthen their coal mining wing and secure more coal mines noting that supply of the dry fuel to power plants is still a concern.
Disclaimer: No Business Standard Journalist was involved in creation of this content
