IEX power prices hit ₹20/unit ceiling as strong demand and tight supply pressure the market

The High Price Day-Ahead Market (HP-DAM) on the Indian Energy Exchange has rallied, often touching the maximum ceiling of ₹20 per unit through much of September, as sustained electricity demand, particularly during non-solar hours, has increased pressure supply.

IEX data for September 6-17 shows the HP-DAM daily market clearing price reaching the ₹20 per unit ceiling during the period, with most trade in time blocks of non-solar hours, alongside a sharp rise in purchase bids.

Coal Availability


The trend comes as peak power demand has remained elevated, hitting a record 269 GW on September 10, unusually high for the month.

In the high demand scenario driven by cooling and irrigation over the usual growth, India has stepped up supplies from thermal power plants.

HP-DAM is a segment of the integrated day-ahead market designed for higher variable-cost generators to participate in exchange-based electricity trading. This includes gas-based plants, imported-coal generation and battery energy storage systems (BESS).

“Power demand remained strong in September, with peak demand reaching 269 GW on September 10,” IEX joint MD Rohit Bajaj said. He added that a 15% deficit in rainfall, likely withdrawal of the monsoon from northwest India and higher temperatures further increased cooling and irrigation demand.

At the same time, lower hydro generation and temporary seasonal disruptions affecting coal availability have tightened supply, increasing demand on power exchanges, he said.

The sustained demand is also reflected in the regular day-ahead market. IEX data shows purchase bids significantly exceeding sell bids in several recent trading sessions, while the market clearing price reached Rs 10 per unit in multiple time blocks.

The average market clearing price in the day-ahead market trade for September 1-17 was Rs 7.83/unit, more than double of what was in the same period a year ago.

HP-DAM is helping meet critical power requirements during this phase of tight supply, said Bajaj.