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GUVNL's Indian Energy Exchange power purchase up 900%

GUVNL purchased 1,565 Million Units (MUs) of electricity from the Exchange in March 2018, which was over nine times more than 173 MUs purchased in March 2017.

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Higher electricity demand due to rising temperature and non-supply of power by two major private producers led state utility Gujarat Urja Vikas Nigam Limited (GUVNL) being forced to purch-ase record quantity of power from the Indian Energy Exchange (IEX) in March.

GUVNL purchased 1,565 Million Units (MUs) of electricity from the Exchange in March 2018, which was over nine times more than 173 MUs purchased in March 2017. In fact, GUVNL accounted for nearly 40% of the total 3,955 MUs of electricity traded on IEX for the month.

Energy and regulatory expert KK Bajaj said that GUVNL purchased a record 65,280 MW of electricity, a little more than 2,100 MW from IEX during March.

"The power sector in Gujarat is passing through a difficult phase because of stoppage of supply of 2,000 MW and 1,000 MW electricity to GUVNL by Adani Power and Essar Power respectively. This leaves GUVNL with no option but to purchase power from the IEX," Bajaj said.

According to Bajaj, GUVNL purchased 1,565 MUs from IEX at tariff ranging from Rs4.03-4.74 per unit. 

"The tariff is much more than the rate at which the two private producers are mandated to supply power to GUVNL. Ultimately, this will be passed on to the consumers," he said, adding that the price of electricity purchased from IEX is likely to go up as summer demand increases.

From 14,300 MW in the last week of March, peak power demand in the state is now over 15,500 MW. In fact, it touched 15,800 MW on Saturday. Officials said that the peak demand is expected to cross 16,500 MW as the temperature rises further.

For March, GUVNL purchased 9,555 MUs, of which central sector and IEX accounted for 4,800 MUs or more than 50%. Gujarat government-owned GSECL supplied 2,203 MUs, while private power producers supplied 1,682 MUs. Renewable energy sources such as wind and solar accounted for 868 MUs of electricity.

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