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Aided by good weather and a ramp-up of renewable energy in southern states, electricity prices at power exchanges have seen a major correction with rates falling by over 65% in May.

As per data provided by Indian Energy Exchange (IEX), the country’s largest power exchange, the price of electricity at its platform in the day-ahead market fell from 10.38 a unit on 6 May to 3.35 per unit on 15 May.

For the week between 9-15 May, average price in the day-ahead market stood at 5.41 per unit while it stood at an average of 4.63 per unit in the real-time market.

This has been possible because of measures taken by the government as well as weather-related changes including the earlier-than-usual pre-monsoon rains in Kerala, an IEX statement said.

In addition, the heavy downpour across coastal states due to cyclone Asnani led to a decrease in power demand across the South.

An increase in hydro and wind power generation in Karnataka, Tamil Nadu, Telangana and Andhra Pradesh also helped to check rising power prices in exchanges during the power crisis.

The cancellation of hundreds of passenger train services by the Indian Railways to facilitate transportation of coal to power plants also helped.

The government has issued a directive to central and state generating stations, asking them to blend domestic supplies with imported coal.

This has helped to address the issue of fuel shortages and helped power companies to ramp up production cutting down shortages.

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