The average spot prices of power have fallen 26% in May, as higher wind power production in States like Tamil Nadu has made them less dependent on energy exchanges for power.
According to data from Indian Energy Exchange, the average power price fell to ₹3.03 per unit in May 2019 (up to May 15) from ₹4.09 per unit in May 2018.
In April 2019, the average power price declined 19%, to ₹3.22 per unit from ₹3.98 in April 2018.
Discoms generally buy short-term power from exchanges to meet their peak demand.
Normally, May is supposed to be the peak month for the State because of ‘Agni Natchatram’. A combination of factors has been cited as the reason for the average cost of power coming down this month compared to last year.
A senior official of Tamil Nadu Generation and Distribution Company said demand for power coming down in north-eastern States and buoyant wind energy contributed to the fall in prices. He pointed out that the wind generation started peaking this month, whereas it was low last year.
An official from the Indian Energy Exchange cited good renewable energy, hydrogeneration and demand not increasing drastically as key reasons for prices falling.
According to data from State Load Despatch Centre, an all-time high consumption of 369.940 million units was reached on April 12 and in terms of demand the all-time high was 16,151 MW on April 3. On May 17, 1,349 MW of wind energy was generated during the lighting peak evening hours and the consumption was 354.502 million units, as per the data.
