Kolkata: Spot power prices in India have increased almost a rupee per unit since April last year mainly because of higher e-auction price of coal.Prices at e-auctions rose almost 16% while spot power rates increased 18% in the first nine months of the current fiscal. Coal India sold 18% more coal at the auctions.
Many independent power producers buy coal auctioned by Coal India, and their generation cost depends on the price at the e-auction.
“As coal prices are on the rise, they are quoting higher prices for the power they intend to sell,” said Rajesh K Mediratta, director-business development at Indian Energy Exchange.
A senior Coal India executive said average auction prices in April-December 2017 was ₹1,738 per tonne while in the last three months of the same period it was ₹1,998 per tonne. It rose further to ₹2,089 in January.