New Delhi, April 29 -- Even as India's electricity demand hit record highs in April, power prices crashed to near-zero during peak solar hours during the month-a paradox driven by too much renewable energy chasing too little flexible demand.

For the second time in two years, rates on the Real Time Market (RTM) of the Indian Energy Exchange (IEX) dropped to near-zero- Rs.0.0003 per unit on the afternoon of 5 April-as excess solar power flooded the market even as demand dipped due to rains and thunderstorms in Delhi and other parts of northern India. The first such instance was on 25 May last year.

Prices have since remained volatile, falling to as low as 40 paise per unit on 12 April even as they recently hit the Rs.10 per unit cap amid ...