IEX sees oversupply of electricity; fall in trading volumes

Indicating sluggish power demand, Indian Energy Exchange saw a decline in electricity trading volumes in November even as the availability continued to remain high.

The fall in volumes was mainly on account of the onset of winter in the northern region where the demand for electricity fell as much as 25%.

November saw 2,481 MUs (million units) traded in the market, marking a decrease of around 6% from the 2,645 MUs traded in October, IEX said in a statement today.

Last month, total sell bids touched 4,239 MUs, while the buy bids were for around 3,660 MUs.

According to the exchange, with winter season in northern India, the constituent states in the region traded almost 25% less power in November compared to the previous month.

"In the eastern region too, the demand reduced owing to heavy rainfall caused by cyclonic activities," it said.

Besides, congestion in transmission network restricted inter-regional flow of electricity.

About 497 MUs of electricity in the day-ahead spot market was lost due to congestion last month, the statement said.

"The volumes traded at the exchange could have been higher had it not been for severe transmission congestion, especially in the Southern corridor - between rest of India and the Southern region as well as in the Southern bid areas of S1 (Andhra Pradesh and Karnataka) and S2 (Tamil Nadu and Kerala)," it added.

Meanwhile, the average market clearing price climbed to Rs 2.78 per unit in November, from Rs 2.71 recorded in the previous month.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • The economic survey falls in step with the BJP’s election manifesto

    It’s always tough to find something wrong with the annual economic survey as it only articulates the government’s desire to set its house in order

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Nigavekar

Why higher education needs innovation

India is such a great country that it creates complexity ...

Zehra Naqvi

We must overcome the fear of death

It is the biggest irony that the only thing that’s ...

Dharmendra Khandal

Jawai leopards and locals can coexist peacefully

At first glance, the Jawai landscape seems like a large ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture