Higher electricity demand, coal shortage, lower wind and hydropower generation have kept electricity prices higher. Average spot power price at Indian Energy Exchange (IEX) rose 45.5% in October at Rs 5.94 per unit over Rs 4.08 per unit in the year-ago month as IEX witnessed highest ever sales volume of 7,125 million units, an increase of 63% compared to same period in 2017.
However, delay in the arrival of festival of lights this year – Diwali falls on November 7 as against October 19 last year — has surely helped spot power prices cool down a bit, thanks to the onset of early winter this year. Heat isn’t at its peak now with the first snowfall happening in the Himalayan ranges in J&K and Himachal Pradesh last weekend. During last Diwali, spot power prices had touched a three-year high of Rs 10.80 per unit. However, post-Diwali last year the average market clearing price dropped to Rs 3.55 per unit in November. On Monday, peak per-unit price stood at Rs 4.79. Read more