9 Baje 9 Minute: Electricity prices crash to 70 paise per unit on Indian Energy Exchange
Photo by iexindia.com

With the Prime Minister Narendra Modi's call to switch off lights for nine minutes from 9 pm on Sunday, April 5, the distribution companies in order to reduce the demand have sought to sell power on the Indian Energy Exchange (IEX).

There was a sudden jump in the sale bids by 1,400 MW - from 7900 MW to 9300 MW while buy bids declined from 4200 MW to 2500 MW, a fall of 1,700 MW.

Because of minimal demand from the buy side, the prices on IEX reduced from Rs 2.40 per unit to 70 paise per unit for 15 minutes between 9 pm and 9.15 pm tonight.

The distribution companies are taking advantage of the market as they want to sale the power or back down the generation.

IEX Director (Strategy) Rajesh Mediratta told FPJ, "Distribution companies use the exchange for managing their sudden ramp up or ramp down requirement during such events. Even during solar eclipse, markets can act as big enabler. Though many distribution companies have started using markets to even out their purchases and backing down, still few distribution companies need to become smarter.''

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