Average spot prices fall as rains bring relief

Due to widespread rainfall, electricity demand has dampened which has led to a decline in the average spot power prices by about three-fourths.

Another reason for the decline in the prices is the operationalisation of more imported coal-based generation units by Tata Power and Adani Power. This is a sign of relief from the coal crisis in the country.The total coal stock at power plants stood at 7.5 million tonnes as of October 17, 2021. Over 3,500 MW capacity of power was surplus in various time blocks on the day-ahead market (DAM) of the Indian Energy Exchange (IEX). The spot power prices on the DAM of IEX were Rs 3.76 per unit on average and a maximum of Rs 8.5 per unit on October 18, 2021, as compared to an average spot pricesof Rs 14 per unit last week.

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