Average spot power price is unlikely to breach the Rs 3.50 per unit level in May on account of sufficient coal stock for thermal plants and enhanced supplies from clean energy sources, according to experts.
"Despite higher peak demand of 178 GW, average spot power prices at exchanges would not be more than Rs 3.5 per unit during May because of better supplies particularly from clean energy sources like wind, solar and hydro. Besides, there is no shortage of coal this month for thermal power generation," an industry expert told PTI.
According to the Central Electricity Authority (CEA), out of 127 thermal power plants monitored by it, two power stations had super critical coal situation as on May 9, 2019. These two plants had coal stock of less than four days and there was only one plant which had critical coal situation with stock of less than a week. So, dry fuel shortage is not affecting power generation.
Indian Energy Exchange Director Rajesh K Mediratta told PTI that average spot power price at IEX was Rs 3.3 per unit till May 10, 2019, which was far lower than Rs 4.67 per unit in May 2018.
Elaborating further, he said, "The key reasons for rise in volume and price in May last year were increase in demand due to summer, lack of adequate availability of coal, low hydro generation, slow pick-up in the wind power generation in southern and western states."
The peak demand of power this month was 178 GW due to summer season, Mediratta said adding that high peak demand of 178 GW was recorded in September 2018.
According to National Load Dispatch Centre Data, the average daily hydro power generation has been 465 million units (MUs) so far this month compared to 365 MUs in May last year. Similarly, average daily wind power generation was 228 MUs till May 10, against 147 MUs in the same month last year. Average daily solar energy output also increased to 138 MUs till May 10 over 92.2 MUs in May last year.
However, the daily average coal-based thermal power generation came down on 2,727 MUs till May 10, as against 2,843 MUs in the month last year.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)