: Spot power tariffs have declined to a three-year low of Rs 3.3 per unit in November amidst subdued growth in demand. The average tariffs in the day-ahead market (DAM) of the Indian Energy Exchange (IEX) stood at Rs.
3.3 per unit in November 2024, significantly lower than Rs. 3.
9 per unit in October 2024. The spot power tariffs are at a three-year low in November 2024 and closer to the long-term historical average of Rs. 3.
0-3.5 per unit. The decline was a result of the subdued demand growth and improvement in generation from hydro and nuclear power sources, finds ICRA.
Average spot power tariffs were higher at Rs. 5 per unit in 5M FY2025, though they had declined from the Rs. 5.
4 per unit in 5M FY2024. Growth in power demand stood at 3.3 per cent in November 2024 as per provisional data from the Power System Operation Corporation (POSOCO), higher than 1.
1 per cent in October 2024. Power demand growth had recovered in October after staying negative in August and September. The demand growth further recovered to 3.
3 per cent in the first 27 days of November 2024. While there has been a moderation in growth in recent months, the full-year demand growth is expected to remain reasonable at 5.5-6 per cent.
Meanwhile, coal stock at power plants improved in November 2024 and remains significantly higher than November 2023. The coal stock levels at power plants increased to 13 days as on November 26, 2024 from 11.6 days as on October 31, 2024, reversing the declining trend over the past six months.
While the stocks remained below the normative level, they were better than the year ago figures..
Technology
India: Spot power tariffs at three year low in November
Spot power tariffs hit a three-year low of Rs 3.3/unit in November, driven by subdued demand and higher hydro, nuclear output