Electricity prices on the Indian Energy Exchange continue to soar, with the highest rate for a 15-minute block to be supplied on Thursday going up to as high as Rs 18.2/unit, the highest in 10 years. The average spot power price at the exchange was Rs 7.49/unit, a 75% rise on a year-on-year basis. As much as 271 million units (MU) of electricity was traded on Wednesday, which is 140% more than the same day last year. Trading volume had touched an all-time high of 306 MU last week at the IEX.
Daily trading volume at the exchange has constantly been north of 250 MU since September 25. Experts have noted that a sudden fall in temperature in north India due to rains led states in this area offering surplus power for sale in the exchange.
Research agency India Ratings said in a recent report that apart from coal supply issues and falling wind and hydel power production, partial generation availability of about 40 GW of stressed thermal power assets due to shortage of working capital has also contributed to the recent surge in spot power prices.