Short-term power prices in India dropped by a whopping 28.6 per cent last month to Rs 3.34 per unit on account of better coal availability for power plants that impacted volumes of power trade in the spot market.
In May this year, coal inventory at power plant rose 96.2 per cent year-on-year to 29.1 million tonne leading to a reduction in the number of power stations with sub-critical level of coal inventory to two in May 2019 from 25 in May 2018.
“The higher coal availability at power stations allowed the buyers to purchase more power from the existing long-term power purchase agreement, which decreased the volumes in day-ahead-market, leading to lower short-term power prices on a year-on-year basis,” research firm India Ratings said in a report.
Power generation during the month — excluding renewables — increased 5.6 per cent to 116.7 billion units (BUs) as thermal and hydro generation rose 3.2 per cent and 7.5 per cent Read More
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