Active Stocks
Tue Apr 16 2024 15:59:30
  1. Tata Steel share price
  2. 160.05 -0.53%
  1. Infosys share price
  2. 1,414.75 -3.65%
  1. NTPC share price
  2. 359.40 -0.54%
  1. State Bank Of India share price
  2. 751.90 -0.65%
  1. HDFC Bank share price
  2. 1,509.40 0.97%
Business News/ Industry / Energy/  Power prices rise on exchanges as India braces for a sweltering summer
BackBack

Power prices rise on exchanges as India braces for a sweltering summer

With the IMD projecting higher-than-normal maximum and minimum temperatures across the country this summer, peak power demand is expected to touch 260 GW, well above the record high of 243 GW set last year.

The IMD has projected higher-than-normal maximum and minimum temperatures across the country this summer, except in some isolated patches.Premium
The IMD has projected higher-than-normal maximum and minimum temperatures across the country this summer, except in some isolated patches.

New Delhi: Prices of power on the exchanges have increased over the past week amid rising temperatures and an increase in power demand.

On 2 April the market clearing price (MCP) of power in the day ahead market (DAM) segment of the Indian Energy Exchange was 4.6 per unit, up from 3.5 per unit a week ago. A month ago the price was about 3.6 per unit, and it touched 5.21 per unit on 1 April, its highest level in 30 days.

According to data from the Grid Controller of India, energy demand stood at 4,722 million units on 2 April, about 10.8% higher than the 4,262 million units consumed a month ago. On 2 April last year, energy demand was 3,874 million units. Demand is expected to grow further this month, which could lead to even higher exchange prices.

"Unseasonal rains led to easing of temperatures in April 2023, which kept power demand subdued. Demand growth in April 2024 is likely to be supported by a favourable base and rising temperatures. Going by early trends, demand may see double-digit growth in April 2024," said Vikram V, vice-president & co-group head, corporate ratings, ICRA.

He added that on the supply side, coal stocks have increased over the past few months and are satisfactory at more than 17 days as of 1 April. "While hydro generation has declined, the satisfactory coal stock should aid in meeting the growing demand," Vikram said.

Peak power demand is expected to touch 260 GW this summer, well above the record high of 243 GW set last year. On 2 April India's peak power demand stood at 209.49 GW. The Indian Meteorological Department (IMD) has projected higher-than-normal maximum and minimum temperatures across the country this summer, except in some isolated patches.

Amid concerns of record power demand in the coming summer, the government has announced a number of steps to ensure uninterrupted power supply. The power ministry said on Tuesday that it would direct power plants that use imported coal to operate at full capacity until September. The mandate is currently in place until June. The government said it would also look at imposing a similar mandate for gas-based power plants.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 03 Apr 2024, 03:15 PM IST
Next Story footLogo
Recommended For You
Energy Stocks
₹1,815.85-0.21%
₹166.51.53%
₹609.35-1.3%
₹88.932.52%
₹361.35-0.54%
Switch to the Mint app for fast and personalized news - Get App