New Delhi: Power prices on exchanges have seen a significant decline in recent months due to increased power supply and favorable monsoon. Indian Energy Exchange said power prices in the day-ahead market (DAM) have also declined significantly due to stable rains and increased fuel availability due to increase in production.
Per unit electricity prices in the first half (April-September) of financial year 2025 will be Rs. It fell by about 12 percent and fell at Rs 5.53. 4.87 per unit. This trend continued in November and the average DAM prices from November 1 to November 24, 2024 fell to Rs. 3.21 per unit, which shows an annual decline of 21 percent. Similarly, from November 1 to 24, 2024, the market clearing price in the real-time market declined by 20 per cent year-on-year compared to the same period last year, with an average price of Rs. 3.34 per unit.
According to government data released in October 2024, the country’s energy consumption stood at 140.4 billion units (BU), a marginal increase of 1 per cent over the previous year. Through October 2024, the market clearing price in the day-ahead market is expected to fall 39 per cent year-on-year to Rs. 3.92 per unit. Similarly, through October 2024, the market clearing price in the real-time market is expected to decline by 38 per cent year-on-year to Rs. 3.77 per unit.
Proactive measures by the government and regulators have been important in ensuring stable power supply during this financial year. These measures contributed to increasing the supply on the exchange platform. Strong hydro and wind-power generation along with favorable monsoons have increased fuel availability, leading to a significant reduction in overall power prices.
Peak power demand across the country fell 1.4 per cent to 231,076 MW in September from 243,271 MW in September last year, as adequate rains reduced the need for pumping for irrigation.
