Spot power purchase bids increased in August, IEX data show

CHENNAI: Scanty rainfall and consequent reduction in hydro generation, coal and gas shortages and an increase of agricultural load in some states led to a rise in demand for spot power purchase on the Indian Energy Exchange (IEX) in August.
The electricity traded in the spot market increased 2.5 billion units (BUs), almost 8% higher than 2.3 BUs traded in the July and 7% higher over 2.3 BUs traded in August last year.An average of 80 MUs was traded on a daily basis, an 8% increase over 74 MUs traded last month, a statement from the IEX said.
The spot market received purchase bids worth 4.72 BUs while the sell bids were only 3.01 BUs, clearly indicating that demand surpassed supply this month. Consequently, the average market clearing price (MCP) for the month went up to Rs 4.49 per unit, up by 19% from Rs 3.76 per unit in July this year, the statement said.
The eastern states saw the demand tripling over last month as more than 499 million units (MUs) were bought as compared to only 110 MUs last month. The southern states bought almost 356 MUs of power, 16% more as compared to July, and prices in the south were higher over the prices in other states due to persisting transmission constraints.
The western states sold highest amount of power close to 1.12 BUs this month while the north-eastern states sold almost 108 MUs, almost 57% more over last month, according to the IEX statement.