The Indian Energy Exchange set a record in September by trading a total of 3,630 million units of electricity. This is the highest since its inception of the exchange in 2008. On a daily average basis, 121 million units were traded in September. Around 60% of the power purchasers were open access consumers while the rest were distribution companies.
Power was on an average available at Rs 2.43 per unit, much below all sources of power generation.
Southern and northern states were the net buyer of electricity while the other regions were the net sellers. The tariff on the exchange varied from Rs 2.35 to Rs 2.73 per unit across regions in September.
"Most of the industrial and commercial establishments from south and north bid for electricity on a daily basis last month. Though the bidding cost varied within Rs 3, the landed cost or the final cost which the establishment pays will be around Rs 5 as it will include wheeling and scheduling costs," an exchange official told TOI.
Even at Rs 5 per unit, the cost of power will be cheaper for industries and commercial establishments as the power sourced from a government-owned distribution company will be higher as it will also include cross-subsidy.
"Last month, the daily offtake of power was in the region of 200MW to 700MW through the exchange. Our sellers are independent power producers, captive power producers and at times even distribution companies like the Delhi distribution company which offered power for sale," the official said.
Apart from industries and commercial establishments, even state-owned discoms bid for power. "We purchase 100MW from the energy exchange at Rs 2.47 per unit. Depending on the demand, we are planning to purchase power from the exchange as the cost is less," said a senior Tamil Nadu Generation and Distribution Company (Tangedco) official.
More power would have been available for sale at the exchange but for congestion in the transmission lines. "Overall, around 3 million units were lost due to congestion on a daily average basis. Import of power, especially in the northern region, remained affected due to constraints on the inter-state transmission network. The northern import was congested about 40% of the time and southern import was congested 10% of the time during the month," said the exchange official.
There were 1,223 participants traded in the spot market on an average daily basis. The highest participation was on September 13 when 1,291 participants traded on the exchange.