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Power prices drop at energy exchange, amid higher wind energy generation and lower demand – Mrit News

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Tamil Nadu has been selling surplus wind energy to other states through bilateral arrangements

Tamil Nadu has been selling surplus wind energy to other states through bilateral arrangements

Spot power prices at energy exchange have dropped amid higher wind energy generation and lower demand.

The trading in power exchanges happen in 15-minute blocks and prices keep changing based on the demand. There are a total of 96 blocks.

According to data available on Indian Energy Exchange Ltd (IEX), average market clearing price for the region comprising Tamil Nadu was ₹6.59 per unit on July 6. In some of the blocks the price ranged between over ₹3 per unit to ₹6 per unit.

Earlier this year amid coal shortage, the power prices were ₹12 per unit. The Central Electricity Regulatory Commission had asked the power exchanges to cap prices at ₹12 per unit, as the prices went up to ₹20 per unit.

According to IEX, owing to improved supply-side availability, the prices at the day ahead market reduced to ₹6.49 per unit in June 22 from ₹6.76 in May 2022.

In the current wind season, Tamil Nadu has been evacuating record wind energy.

Tangedco chairman and managing director Rajesh Lakhani on Wednesday tweeted that the wind energy utilised on Tuesday (July 5) was 111.129 million units, beating the previous peak of 107.552 million units on 7/8/2020.

K. Venkatachalam, Chief Advisor, Tamil Nadu Spinning Mills Association noted that Tamil Nadu has evacuated over 100 million units of wind energy for three consecutive days.

He also lauded the State Load Despatch Centre (SLDC) for the record and expected the record to continue given the good forecast for wind energy.

For July 7 and July 8, the wind energy generation is forecast to be 96.83 million units and 98.91 million units respectively. It is expected to cross 100 million units on July 9.

As per information available on SLDC’s website, the consumption stood at 351.251 million units on July 5. The State witnessed an all-time high consumption of 388.078 million units on April 29, 2022.

According to sources, Tamil Nadu has been selling surplus wind energy to other states through bilateral arrangements.

A.D. Thirumoorthy, State-level Renewable Energy Committee member said the prices at exchange have eased due to higher wind generation and also power demand easing due to cooler weather in certain parts of the country.

With high wind energy, Tangedco is undertaking maintenance of thermal units. This is also advised by the Southern Regional Load Despatch Centre, he added.

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