From The Economic Times · Shilpa Samant · · 1m 20s
India's power prices hit ceiling as demand surges
Record electricity demand and tight supply push Indian Energy Exchange prices to their maximum limit.
In brief
Record electricity demand and tight supply push Indian Energy Exchange prices to their maximum limit. India's power market is under severe strain from record demand and constrained supply, forcing prices to their ceiling and revealing structural challenges in meeting peak electricity needs. Originally reported by The…
Power prices hit maximum ceiling
The High Price Day-Ahead Market on India's Energy Exchange has repeatedly touched its ₹20 per unit ceiling throughout September as electricity demand surges.
Record demand hits 269 gigawatts
Peak power demand reached an unusually high 269 GW on September 10, driven by cooling needs and irrigation during a period of lower rainfall.
“Power demand remained strong in September, with peak demand reaching 269 GW on September 10”
Supply tightens from multiple angles
Lower hydroelectric generation and temporary coal supply disruptions have reduced available power, while a 15% rainfall deficit and higher temperatures increase demand pressure.
HP-DAM market fills the gap
The High Price Day-Ahead Market segment allows gas plants, imported coal generators, and battery storage systems to trade electricity at premium rates during supply crunches.
Regular market prices also climbing
The standard day-ahead market saw average clearing prices of ₹7.83 per unit in early September, more than double the price from the same period last year.
Demand outpacing supply significantly
Purchase bids are substantially exceeding sell bids across multiple trading sessions, signaling buyers are desperate to secure power while generators struggle to meet needs.
At a glance
India's power market is under severe strain from record demand and constrained supply, forcing prices to their ceiling and revealing structural challenges in meeting peak electricity needs.
