Power price at Indian Energy Exchange crashes to 70 paise per unit for 9 PM delivery slot on Sunday


Kolkata: Power prices for delivery between 9 PM and 9.15 PM on Sunday has crashed to 70 paise per unit at the Indian Energy Exchange, against near Rs 3 per unit on Saturday for the same slot due to an expected 12.9 GW fall in demand when lights would be switched off by every household for nine minutes.

PM Narendra Modi has appealed citizens to switch off electric lights at 9 pm on Sunday for nine minutes, and light candles or diyas, or flash torchlights or mobile lights standing at their doorsteps or balconies as gesture towards the battle against COVID-19 pandemic.

According to trades settled for delivery on Sunday, power prices touched a peak of nearly Rs 3 per unit at 7.30 PM following which it fell sharply to 70 paise for the 15-minutes slot starting 9 PM. Power prices recovered to nearly Rs 3 per unit at 9.45 PM.

Sunday’s average price was settled at around Rs 2.38 per unit since, demand during rest of the day is expected to be nearly at same levels seen during the rest of week.

Power System Operation Corporation Ltd (POSOCO), the national power grid operator, has estimated the reduction in power demand as a result of switching off lights on Sunday night at around 12,879 MW.

In an advisory POSOCO said that unlike normal operation, this reduction in load of the order of 12-13 GW would happen in 2-4 minutes and recover nine minutes later within 2-4 minutes. Prices at the Indian Energy Exchange reflects the sudden drop and rise in demand.

Terming this event ‘unprecedented’ it said the situations needs to be handled through reduction in generation of hydro and gas resources.

According to the advisory, north will witness a 3,436 MW reduction demand, west will witness 3,686 MW reduction demand, south will see a 2,660 MW reduction demand. Eastern region is expected to see a 2,511 mw fall, while north east will witness a 567 mw reduction in demand load.

Highest dip in demand is expected to be witnessed by Uttar Pradesh followed by Maharashtra, estimated at 1865 MW and 1744 MW respectively.


Source : The Economic Times