India's Power Prices Hit ₹20/Unit Ceiling Amid Record 256 GW Demand
Heatwave-driven surge pushes HP-DAM tariffs to regulatory cap as India grapples with unprecedented electricity consumption
En resumen
- India's day-ahead power market saw tariffs surge to the ₹20 per unit regulatory ceiling in late April as heatwave conditions drove peak demand to a record 256 GW on April 25.
- The high-price segment (HP-DAM) on the Indian Energy Exchange enabled costlier sources like imported coal and gas plants to meet incremental demand, with average prices reaching ₹19.6/unit compared to ₹15.3 a year ago.
Resumen generado por IA
Por qué importa
The HP-DAM segment was created to address the gap where price caps of ₹10/unit on regular power exchanges limited participation from higher-cost generators like imported coal, gas, and battery energy storage systems. This segment allows such generators to offer additional capacity during peak demand periods.
New Delhi: Surging power demand drove prices higher in India's high-price day-ahead power market (HP-DAM) in the second half of April, with tariffs hitting the regulatory ceiling of ₹20 per unit in non-solar hours on multiple days.
The Indian Energy Exchange (IEX) data showed electricity was traded at higher prices during non-solar hours. The HP-DAM is a segment on the IEX where costlier electricity, such as from imported coal-based units, gas-fired plants and renewables paired with battery storage, is traded among generators and distribution companies.
Data for April showed that trading in the HP-DAM picked up in the second half of the month, with market clearing prices touching ₹20 per unit on multiple days in parts of the session, a shift from the first half of the month, when there was virtually no trading.
The average daily price for April in the HP-DAM was ₹19.6 per unit, as against ₹15.3 a year ago. In contrast, the average daily price in the day-ahead segment, where the ceiling is ₹10, was ₹5.3 per unit. This was because of lower prices in trading in solar hours with sufficient power supply.
In April last year, the volume traded in the HP-DAM segment was higher but the prices reached a maximum of ₹17 per unit.
Power demand rose in April as several parts of the country reeled under severe heatwave conditions and higher maximum temperature. Peak power demand touched a record 256 GW on April 25.
"April 2026 saw peak power demand reach 256 GW alongside a sustained rise in electricity consumption, putting pressure on available supply," Rohit Bajaj, joint managing director, IEX, told ET.
The existing price cap of ₹10 per unit on power exchanges limits participation from higher-cost generators such as imported coal, gas and battery energy storage. The HP-DAM addresses this gap by enabling such generators to offer additional capacity to meet incremental demand.
Energy storage capacities have played a key role in the trade, with some merchant projects being able to sell in the high demand period in non-solar hours apart from imported coal-based power plants, said an industry expert.
Qué observar
Perspectiva de IA — posibilidades, no hechos
HP-DAM price cap may be reviewed or increased to attract more generation capacity
Posible · En meses
More battery storage projects may be developed to capture high price periods
Probable · En meses
Preguntas abiertas
- Will the ₹20 price cap be revised?
- How quickly can new capacity be added?
- What is the role of energy storage in future peak demand?
