January 2015 has been quite different for the short term power market than is expected generally. While NR continued to dominate the short term power demand, its share went up signifi cantly to almost half the power procured in the short term market across the country (49.1% of PX procurements and 44.9% of bilateral purchases).
What’s also signifi cant is that the short term power procurement in SR topped WR to gain the second spot, both in overall short term buying and in the bilateral market. SR procurements stood at 24.3% of the All India scheduled short term market transactions contributed by BL and PX. Buyers in SR procured 25.5% of overall power traded in the bilateral market and 21.7% of the total power traded in the power exchanges. The share of purchases by constituents in WR (19.2%) stood far lesser than SR (24.3%). Considering the power that could not fl ow on account of transmission congestion; SR clearly is all set to retain the second spot as constraints start easing out towards the end of 2015.
We also see that almost 93% of the short term demand in NR and SR was met from sources within the region which is a very healthy sign from the grid management perspective. A lot of additional generation in SR is attributed to the commissioning of Coastal Energen which has been selling almost 500 MW of power on a daily basis, easing a lot of demand defi cit experienced in SR for long.
We also notice that the Power Exchanges volume has remain relatively stable over the last 3 months after witnessing a peak in October 2014. The PX volume in Jan 2015 was lesser than the trade done in the same month last year by 343 MUs indicating a loss of almost 11 MUs per day or ~500 MW RTC power on a daily basis. The volume has gradually shifted towards bilateral trade where the volumes have gone up signifi cantly when compared to a weak trade of just 3,201 MUs (against 2,800 MUs in PX) during October 2014. The volume of trade in PX for Jan’15 stood at 2,164 MUs as against 4,628 MUs in the Bilateral Market.
The prices continue to slide in the power exchanges because of limited demand. While the average price in NEW grid which was around Rs 2.71 for Jan’15 was relatively stable as compared to last three months, the prices in S1 and S2 have come down signifi cantly since November. The fall in power prices in SR only in the last two months has been from Rs 4.86 to Rs 3.86 in S2 from Rs 3.82 to Rs 3.42. These prices would ease a lot of fi nancial pressure on the discoms and would help consumers by not only hedging them from much sharper tariff hikes but also better power supply.
Power sale from key private generators The following table lists down the power sale summary of major power generators across the country with details of the mode under which power was sold by each of them, to facilitate a comparative analysis.
Courtesy: India Electron Exchange Ltd