The maximum spot power market clearing price (MCP) on the Indian Energy Exchange surged to ₹14.08 a unit for Tuesday in the Day Ahead Market on Monday.

“This is the highest maximum spot power price registered in eight years,” Rajesh Mendiratta, Director, IEX, Power & RE Markets and Policy & Regulations, told BusinessLine . “The higher levels were registered in 2009, when the prices reached ₹17 a unit. By our assessment, the demand is higher from household consumers. There is also a noticeably higher demand for from the southern States.”

“The price is driven by a dip in power generation from hydro sources and constraints in coal supply,” he added.

The ₹14.08 a unit maximum MCP is ₹1.13 a unit higher than the levels registered for Monday. The average MCP for Tuesday stood at ₹6.53 a unit — this too was higher by 22 paisa compared to Monday’s levels. The minimum MCP is higher by 59 paisa to ₹3.40 a unit.

Peak demand

The peak power demand of the country has been steadily rising in September but there has been a dip in generation from hydro power and wind power sources.

According to the National Load Dispatch Demand Supply Report, power demand till September 16 has been up 7 per cent at 167,569 MW from a low of 151,125 MW on September 2.

Comparably, there has been a 19 per cent dip in hydro power generation — from 740 million units on September 1 it fell to 540 million units on September 16. There has also been a 33 per cent lower wind power generation from 242 million units on September 1 to 97 million units on September 16.

On the IEX, there has been a 25 per cent dip in sell bids at 200 million units on September 18 from 267 million units on September 1. The buy bids have risen by 88 per cent at 266 million units on September 18 from 141 million units on September 1.

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