Surge in spot power prices: Understanding deficit in a power surplus country


Surge in spot power prices: Understanding deficit in a power surplus country

Volatile petrol and diesel prices, rupee and stock markets have taken centre-stage and have been capturing the headlines in the country for quite some time now. Amid these events happening in tandem, there has been an innocuous trend, which has not been captured adequately. It is about soaring spot prices of power in the country.

Spot price of power is the per unit cost of energy in terms of kilowatt hour (Kwh) being transacted at the national power exchanges and is an indicator of power availability to cater for short-term demand. These prices have moved from a prevailing normal of Rs 3 to Rs 4 per unit earlier to as high as Rs 20 per unit recently.
Surplus power

With about 350 gigawatt (GW) of power generation capacity in place and hardly about 170 GW of peak demand, many states having generation much more than demand, the claim being power surplus is at least, apparently, not unfounded. Read More

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