NEW DELHI, May 17 -- Aided by good weather and a ramp up of renewable energy in states in southern India, electricity prices on power exchanges have seen a major correction with rates falling by over 65% in May.
As per data provided by Indian Energy Exchange (IEX), the country's largest power exchange, price of electricity at its platform in the day-ahead market fell to Rs.3.35 per unit on 15 May from Rs.10.38 a unit on 6 May.
During 9-15 May, average price in day-ahead market stood at Rs.5.41 per unit while it stood at an average of Rs.4.63 per unit in real-time market.
This has been possible due to several measures initiated by the central government as well as the weather-related changes including the earlier than usual pre-monsoon rains in Kerala, an IEX statement said.
Heavy downpour in coastal states due to cyclone Asnani also led to lower demand for electricity and thus pulled down prices.
An increase in hydropower and wind power generation in Karnataka, Tamil Nadu, Telangana and Andhra Pradesh also helped check rising power prices in exchanges during the time of power crisis.
Cancellation of hundreds of passenger train services by the Indian Railways to facilitate transportation of coal to power plants, have been announced. The government has issued a directive wherein central and state generating stations have been asked to blend domestic supplies with imported coal. These have helped address fuel shortages and also power generators to ramp production, cutting down shortages. Published by HT Digital Content Services with permission from MINT. For any query with respect to this article or any other content requirement, please contact Editor at email@example.com