IEX Power Prices Hit ₹20
Strong electricity demand and tighter supply pushed the High Price Day-Ahead Market to its maximum price ceiling in September.
Power prices on the Indian Energy Exchange (IEX) have surged in September, with the High Price Day-Ahead Market (HP-DAM) repeatedly touching its ₹20-per-unit ceiling amid strong electricity demand and tighter supply. IEX data for September 6–17 showed the market clearing price reaching the maximum level, particularly during non-solar hours.
India’s peak power demand reached a record 269 GW on September 10, unusually high for the month. According to IEX Joint Managing Director Rohit Bajaj, higher cooling and irrigation requirements, a 15% rainfall deficit and the likely withdrawal of the monsoon from northwest India contributed to the elevated demand.
Supply conditions have also tightened. Lower hydropower generation and temporary seasonal disruptions affecting coal availability have increased pressure on available electricity supply, raising demand on power exchanges.
The HP-DAM is designed to facilitate exchange-based trading by generators with higher variable costs, including gas-based plants, imported-coal generators and battery energy storage systems. It is being used to meet additional power requirements during the current period of tighter supply.
Pressure is also visible in the regular day-ahead electricity market. IEX data showed purchase bids significantly exceeding sell bids in several recent sessions, while prices reached ₹10 per unit in multiple time blocks.
For September 1–17, the average market clearing price in the day-ahead market was ₹7.83 per unit, more than double the level recorded during the same period last year.