Average power price on Indian Energy Exchange hits 13-year high in March

The average power purchase price on India's largest electricity exchange, Indian Energy Exchange Ltd, surged in March to the highest level since April 2009, data on the company's website showed, reflecting a steep rise in electricity demand.

Power demand during March rose at the fastest pace in three months, with electricity shortages the worst since October due to soaring temperatures and a sharp uptick in economic activity.

The number of buy bids, reflecting demand on the day-ahead market, exceeded sell bids, indicative of supply, by 35%, data showed, pushing the average purchase price to 8.23 Indian rupees ($0.1087) per kilowatt hour (kWh), over double the average price in March 2021.

India's power regulator capped prices at 12 rupees ($0.1580) per kWh, saying in an order dated April 1 that "abnormally high prices" at power exchanges hurt consumers' interests and eroded buyers' confidence in the market.

India's power demand is expected to surge further heading into summer, after weather officials forecast maximum temperatures above normal in April in most parts of the northwest, northeast and central regions.