If another hot summer causes shortages similar to last year’s, India’s largest power consumers will soon be able to get more expensive electricity rather than being compelled to reduce operations.
Exceptionally warm temperatures for this time of year are prompting forecasts that this summer’s electrical consumption may reach a record high, depleting domestic coal supply and transportation infrastructure and leading to blackouts similar to those of last year. Last year’s inadequacies led several companies to reduce their output while exposing citizens to oppressive heat waves.
The high-price window could help narrow the gap by bringing back tens of gigawatts of under-utilized generation capacity. The regulator has given the exchange permission to launch the high-price spot trade window. All other deals on the platform will continue to have a kilowatt-hour price cap of 12 rupees.