February power selling price dips to record low of Rs 2.3/unit at IEX

Average power selling price in February fell to a record low of Rs 2.30 per unit at Indian Energy Exchange. “With average Market Clearing Price (MCP) in February 2016 at an all-time low of Rs 2.30 per unit in 2015-16, the spot power market continued to be the most competitive option for distribution utilities and open access consumers to procure power,” IEX said in a press release on Thursday. 

According to the statement, average MCP at Rs 2.30 per unit is about 9 per cent lower than Rs 2.52 per unit in January. Even average Area Clearing Prices (ACP) across all bid areas reduced by 6-12 per cent in February. Interestingly, ACP at Rs 2.51 per unit in the Southern region was even lower than ACP in the Northern region at Rs 2.64 per unit. 

This has particularly been due to increase in generation capacity within the southern region and reduced reliance on import of power from the rest of India. However, transmission congestion in western region to southern region and eastern region to southern region corridors continued. At 2,818 mus, volume traded in February was marginally lower than volume traded in January (2,929 mus). 

However, the average daily volume in Feb 16 was much higher at 97 mus (million units) in comparison to 94 mus last month. Aggregated purchase bids for the month were 3,285 mus (about 4,720 mw on average daily RTC basis) and sell bids were 5,338 mus (about 7,670 mw on average daily RTC basis), it added. 

About 112 mus were curtailed in Feb 16, about 26 per cent lower than volume curtailed in January (152 mus (million units).