Power Demand Spike Pushes Market Rates to ₹20/Unit
What Happened
The High Price Day-Ahead Market on the Indian Energy Exchange repeatedly reached its ₹20-per-unit ceiling between September 6 and 17, mainly during non-solar hours. India’s peak electricity demand touched a record 269 GW on September 10, while the regular day-ahead market averaged ₹7.83 per unit during September 1-17, more than double the year-ago level. A 15% rainfall deficit, higher cooling and irrigation demand, lower hydropower generation and temporary coal-supply disruptions tightened electricity availability. IEX’s published price trend also showed the regular day-ahead market at ₹8.10 per unit on September 18.
Key Takeaways
The ₹20 rate applies specifically to IEX’s high-price market segment, not to all electricity traded on the exchange. It reflects the steep cost of securing additional power from higher-cost sources when normal supply is insufficient.