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New Delhi: India witnessed an all-time high volume of electricity traded in a month on the exchange market in September due to a raft of reasons such as higher demand from eastern, western and southern states, low availability of coal and reduced wind and hydropower generation, according to the India Energy Exchange (IEX).

Also, scanty rainfall and dry weather in the southern states led to a record 5,829 million units (MU) being traded in September.

Prices touched 17.55 per unit on the IEX on Saturday. The all-time high for electricity in the spot market was 8.2 per unit for October 4 delivery. The previous all-time high for electricity in the spot market was 7 per unit in April 2009. Prices have been rising since September.

“The all India peak demand touched 176 gigawatt (GW) on 18 September 2018, registering 3% increase over August 2018 and 11 % increase over September 2017," IEX said in a statement.

“The electricity market at IEX – the Day Ahead- Market (DAM) and Term Ahead-Market (TAM) combined traded the highest ever monthly volume of 5,829 MU in September’18."

A power exchange functions on the lines of commodity exchanges and provides a platform for buyers, sellers and traders of electricity to enter into spot contracts for the same day, coming day, and on a weekly basis.

Of around 1,200 billion units (BU) of electricity generated in India, the short-term market comprises 130-150BU. This trade volume has grown by 10% annually and is currently valued at about 22,124 crore.

The country also registered an all-time high volume of 306.28 million units (MUs) of electricity traded in the exchange market on 29 September, Mint reported due to higher demand from states such as Tamil Nadu, Andhra Pradesh, Telangana, Orissa, West Bengal, Assam, Gujarat and Maharashtra.

ABOUT THE AUTHOR
Utpal Bhaskar
"Utpal Bhaskar leads Mint's policy and economy coverage. He is part of Mint’s launch team, which he joined as a staff writer in 2006. Widely cited by authors and think-tanks, he has reported extensively on the intersection of India’s policy, polity and corporate space.
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