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.

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