Exchange prices of power fall amid ease in supplies
Indian Energy Exchange stood at ₹3.69 per unit, against ₹4.90 per unit last month, showed data on the exchange website. On a year-on-year basis, the price in the real-time market for the first five days of March was ₹2.8 per unit or 57% lower. "Sell-side liquidity on the exchange has surged by nearly 90% in the initial five days of March.
This trend mirrors the scenario observed in February, where sell-side liquidity stood at approximately 50%. The surge in sell-side liquidity can be attributed to capacity additions, spurred by the rapid expansion of both thermal and renewable energy sources. In 2023 alone, nearly 7 GW of thermal capacity was installed, further contributing to this upward trend," said an official with a power exchange.
Sell-side liquidity refers to the availability of securities—power, in this case— for sale in a market. According to data on the Power Exchange of India Ltd, the volume for sale or the sell bids on the exchange on Sunday stood at 3,501.50 MWh (megawatt hour), while the buy bids stood at just 275 MWh. Similarly, over the past one week the sell bids on the Indian Energy Exchange stood at 2,763.85 GWh (gigawatt hour), while the total bids for purchase stood at 1,768.74 GWh.
On a month-on-month there has been increase in supplies. The sell bids on the IEX on Sunday stood at 376.12 GWh, while a month ago it was at 278.85 GWh. Further, a relatively lower demand compared to the month-ago period with the winters fading away, is also likely to have helped ease the price.
Read more on livemint.com
