Spot power prices on the Indian Energy Exchange Ltd. rose around 13% in May on account of higher non-solar power generation to meet the evening residential demand. The spot or day ahead market, or DAM, prices rose to Rs 5.76 per kilowatt hour, compared with an average price of Rs 5.10 per kilowatt hour in April, according to IEX data as of May 3.
The power demand has started to rise, and as of May 2, the maximum demand met across India was 222 GW, according to the Grid Controller of India. The peak demand during the summer is expected to breach 250 GW on account of higher economic activities, compared with 240 GW touched in September last year.
The average market clearing price in the morning was around Rs 3.11 per kilowatt hour, while in the evening it zoomed to Rs 8.08 per kilowatt hour and in the night to Rs 7.63 per kilowatt hour.
The morning prices are lower on account of a lower tariff for solar power, but the night tariffs are higher due to an increase in non-solar power production, including thermal.
The weighted average Green-Day Ahead Market (G-DAM) price was around Rs 4.99/kWh compared with Rs 4.10/kWh in April.
Term Ahead Market Prices
The prices for term ahead market, or TAM, which comprises contingency, daily, weekly, and monthly contracts for up to three months, were higher between Rs 8.4/kWh and Rs 10/kWh in anticipation of higher demand in May and June.
Intraday, the green-term ahead market non-solar and green-day ahead non-solar prices, both, touched the ceiling of Rs 10/kWh.
In April, the term-ahead market volumes were up 51.7% YoY to 1,276 MU.
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