PRICE DYNAMICS IN SHORT TERM OPEN ACCESS : New report by IndianPowerSector.com
IndianPowerSector.com
May 19th, 2014
2

In an attempt to help the consumer to understand the Open Access (right to choose own source of Power), IndianPowerSector.com has come with a comprehensive report on Open Access with is second in series. The report explains various factors affecting price in Open market, the below is the exclusive article from the report on Price Dynamics.

Report Brochure : Advertising Opportunists Available 

Price dynamics

The average MCP across the North, North-East, East regions, the State of Chhattisgarh (W3 bid-area) and the state of Punjab (N3 bid area) was Rs.3.06, Rs.3.08, Rs.3.05, Rs.2.09 and Rs.3.06 respectively for FY 2013-14. Prices in the Southern region (S1 and S2 bid areas) were higher as compared to prices in other regions. In S1 bid-areas (Karnataka and Andhra Pradesh) the average price was at Rs.3.65 per unit, marking a negligible increase in price over the last month.  While in the S2 bid-area (Tami Nadu and Kerala), price could not even be discovered for most of the months mainly due to persistent constraints in power flow.

The Area Clearing Prices (ACP) is different from the Market Clearing Price as the rise/fall of price in an area occurs due to the effect of transmission congestion which causes market splitting.

Congestion in the corridor is made easy to understand by comparison of the actual allotment of corridor for long term contracts with the capacity available for short term markets. If the flow is more than the capacity, the ACP comes into picture so that excess demand is trimmed. And if the flow is not more than the capacity, MCP is calculated for the whole area. This is because if the flow is more than the capacity at the market price for the whole area, market splitting takes place.

The average ACP (DAM+TAM) for NEW regions for the FY 2013-14 remained at Rs.2.92 per unit, reflecting a decrease of 10% over the price last year. Prices in the Southern region (S1 and S2 bid areas), where the congestion is the most prevailing hurdle, were higher as compared to prices in other regions. In S1 bid-areas (Karnataka and Andhra Pradesh) the average price was at Rs.3.65 per unit, marking a negligible increase in price over the last month. While in the S2 bid-area (Tamil Nadu and Kerala), price was recorded at 6.87 (moving average)

The price was reduced in the surplus area (sale > purchase) and increased in the deficit area (purchase > sale).This reduces the sale and increase the purchase in the surplus area. In the same way, it reduces the purchase and increase the sale in the deficit area. Therefore, the prices are higher in the Areas with transmission congestion.

 

Previous report of IndianPowerSector.com on Open Access

 

 

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2 Responses to PRICE DYNAMICS IN SHORT TERM OPEN ACCESS : New report by IndianPowerSector.com

  1. Pankaj K Gupta says:

    can you provide the report of Price dynamics of Open Access

    • IndianPowerSector.com says:

      Dear Pankaj,

      The report will be available free of cost to download from our website in month of June. Right now we are looking for sponsors ro advertise their services in the report like – power traders, metering companies, and other services related to Open Access

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