As a first step towards greening the Indian short-term power market, Minister of State (Independent Charge), Power & New and Renewable Energy, Raj Kumar Singh launched pan-India Green Term Ahead Market (GTAM) in electricity through video conference in New Delhi on Tuesday.
The market is also the first exclusive product for the renewable energy sector globally.
Speaking after the launch, Singh said, “The introduction of the GTAM platform would lessen the burden on renewable energy (RE)-rich states and incentivise them to develop RE capacity beyond their renewable purchase obligation (RPO). This would promote RE merchant capacity addition and help in achieving RE capacity addition targets of the country.”
He further added that the GTAM platform would lead to an increase in the number of participants in the renewable energy sector. It will benefit buyers of RE through competitive prices and transparent and flexible procurement. It will also benefit RE sellers by providing access to the pan-India market
The Govt of India’s target of 175 GW RE capacity by 2022 is driving accelerated renewable penetration pan-India. GTAM contracts will allow additional avenues to RE generators for sale of renewable energy, enable obligated entities to procure renewable power at competitive prices to meet their RPOs and provide a platform to environmentally conscious open access consumers and utilities to buy green power.
Bilateral Transactions on GTAM
Transactions through GTAM will be bilateral in nature and with clear identification of corresponding buyers and sellers, there will not be any difficulty in accounting for RPO. GTAM contracts will be segregated into solar RPO and non-solar RPO as RPO targets are also segregated. Further, within the two segments, GTAM contracts will have green intraday, day-ahead contingency, daily and weekly contracts.
For green intraday contract and day ahead contingency contract bidding will take place on a 15-minute time-block wise megawatt (MW) basis. In the case of daily and weekly contracts, bidding will take place on a megawatt-hour (MWh) basis. Both buyers and sellers can submit the bid, however, the seller will provide a profile in terms of a 15-minute time block-wise quantity (MW) along with the price (Rs/MWh). After the contract gets executed scheduling will take place as per the profile. In the case of multiple buyers, the profile will get allocated on a pro-rata basis.
Price discovery will take place continuously, i.e., a price-time priority basis. Subsequently, looking at the market conditions, an open auction can be introduced for daily and weekly contracts. Energy scheduled through the GTAM contract shall be considered as deemed RPO compliance of the buyer.
The power minister also mentioned that other products to be introduced in the power market for the promotion of RE were in the pipeline and would be introduced soon.