Chennai: The average power tariffs in the day-ahead market (DAM) of the Indian Energy Exchange (IEX) rose to Rs 5.1 per unit in April 2024, up from Rs 3.9 per unit in March 2024 as the demand increased with the summer heat.
In FY2024, the average spot power tariffs remained elevated at Rs 5.2 per unit, although lower than Rs 6 per unit in FY2023.
The rise in prices can be attributed to demand growth which remained healthy at 9.4 per cent on a year-on-year basis in April 2024 as per provisional data from the Power System Operation Corporation (POSOCO), up from 9.2 per cent in March 2024.
All-India electricity demand growth has risen to 9.2 per cent in March 2024 from 7.5 per cent in February 2024. Further, demand growth improved to 9.4 per cent in the first 28 days of April 2024 according to POSOCO data, with the onset of summer and a favourable base.
The full-year demand growth for FY2024 was healthy at 7.6 per cent. According to ICRA, the demand growth is expected to moderate to 5.5-6 per cent in FY2025.
Meanwhile, coal stock levels declined marginally in April 2024 at power plants; though remained higher compared to April 2023. The coal stock levels at power plants declined to 16.9 days as on April 27, 2024, from 17.8 days as on March 31, 2024. This is led by the increase in demand growth with the onset of summer. While the stock levels remained below the normative level, they are still better compared to a year ago. Earlier, the government had extended the order to blend imported coal and operate imported coal-based plants under Section 11 until June 2024.
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