India Power Prices Swing Wildly Pointing to Night Supply Crunch

Spot electricity prices in India are fluctuating dramatically through the day, peaking at night when solar generation drops while sweltering evening temperatures drive demand for cooling.

Prices at the Indian Energy Exchange, the nation’s biggest power trading bourse, have been rising to a maximum regulatory limit of 10 rupees ($0.11) per kilowatthour after sunset, before crashing to almost a tenth of that during the day, data on the company’s website show. The swing captures the plight of a grid flush with supplies during the day but starved at night, when 150 gigawatts of solar capacity switches off.