The economic activities of a country can be assessed through the pattern of its (electric) power consumption. Is easing the lockdown increasing the demand for electricity in the country? How is the change in peak load demand?
If Indian Energy Exchange’s (IEx’s) report is something to rely on then: they witnessed a total trade of 4,790 MU in June ‘20 recording a 5% YoY increase, despite the national peak demand registering a 10% YoY decline during the month.
Increased economic activity and easing of the lockdown restrictions in most parts of the country – coupled with peaking summers contributed to national peak demand at 165 GW and energy consumed at 107 BU, according to data released by NLDC (National Load Despatch Centre).
The Day-Ahead Market (DAM) traded 4,174 MU and witnessed high sell-side liquidity in the month, with total sell bids at 10,164 MU being close to 1.5X the buy bids at 4,661 MU. The average market clearing price during the month was at Rs. 2.35 per unit registered a whopping 29% YoY decline over a price of Rs. 3.32 in June’19.
The increased availability of power and attractive prices in the market ensured that the industries, as well as the distribution utilities, continue to have access to lower electricity prices leading to greater savings as well as assisting them in building the much needed financial liquidity, which is critical at this hour. In fact, the open-access volume in June witnessed 30% M-O-M increase. One Nation One Price prevailed for all 30 days during the month.