Indian merchant generators face price decline

摘要

Indian open market power prices are firming a little after falling for a significant period despite widespread power shortages. The price improvement is ascribed to higher demand for electricity in five states where elections to state legislative assemblies were taking place in April. The political parties heading the governments in the five states are keen that voters did not suffer electricity shortages ahead of the polls. More electricity is thus being bought on a merchant basis through purchases on the open market. However, after the elections market prices may revert to the declining trend seen in 2010.