Hydro reservoir storage up 185%

With increased rainfall in some parts of the country, water reservoirs have risen 185 per cent in the past one month, improving energy availability.

The level of water stored in 81 reservoirs across the country has increased from 14 per cent of the total capacity of 151 billion cubic metres (bcm) of these reservoirs last month to 38 per cent of the capacity currently.

The delay in the monsoon arrival had caused water storage to touch a historic low of 9 per cent in June (see table), as per data from the Central Water Commission.

The latest data of Central Electricity Authority shows daily power availability in the country was 0.7 per cent ahead of demand on August 12 from an 8-10 per cent deficit last month.

Accordingly, the average price of power traded in the market has also started returning to normal levels. The latest data compiled by the Indian Energy Exchange shows the average price of electricity traded on it has gone down from Rs 4.89 per unit (kWh) to Rs 3.61 per unit recorded on Monday.

The delayed monsoon had led to drying of reservoir levels in June, leading to a supply crisis of power. This had pushed the average price of power sold in the market to over Rs 6.19 per unit.

However, a senior official from the exchange said prices are not likely to go down any further.

This moderation in power prices due to the monsoon resuming would reduce the subsidy burden on states, which otherwise would have to procure power at a high cost.

A heat wave in the northern region and a delayed monsoon had pushed up the peak demand for power to over 111,000 Mw in the first half of the current financial year -- around 5,000 Mw higher as compared to the same period last year. This increased demand had pushed up the prices of power traded at the exchange to as high as Rs 12 per unit.

However, the current level of overall 38 per cent water storage in the reservoirs -- 57 billion cubic metres -- is still lower than last year's average water storage of 44 per cent and the last 10 years' average storage of 45 per cent in the same period, according to CWC data.