(The Gist of PIB) Union power minister launches green term ahead market
(THE GIST OF PIB) Union power minister launches green term ahead market
Union power minister launches green term ahead market
Union power minister launched pan-India Green Term Ahead Market (GTAM) in electricity.
GTAM will provide an exclusive platform for short-term trading of renewable and it would be the first physical trading of renewable energy (RE).
The Government of India’s target of 175 GW RE Capacity by 2022 is driving accelerated renewable penetration pan-India.
Key features of GTAM:
Transactions through GTAM will be bilateral in nature 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.
Green Intraday Contract and Day Ahead Contingency Contract – Bidding will take place on a 15-minute time-block wise MW basis.
Daily and Weekly Contracts – Bidding will take place on MWh basis. Both buyers and sellers can submit the bid, however the seller will provide profile in terms of 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 case of multiple buyers, the profile will get allocated on a pro-rata basis.
Price discovery will take place on a continuous basis i.e. price time priority basis. Subsequently, looking at the market conditions open auction can be introduced for daily and weekly contracts.
Energy scheduled through GTAM contract shall be considered as deemed RPO compliance of the buyer.
Green Term Ahead Market contracts will allow additional avenues to the RE generators for sale of renewable energy; enable Obligated entities to procure renewable power at competitive prices to meet their Renewable Purchase Obligations (RPO); and provide a platform to environmentally conscious open access consumers and utilities to buy green power.
It would lessen the burden on RE-rich States and incentivize them to develop RE capacity beyond their own RPO.
Promote RE merchant capacity addition and help in achieving RE capacity addition targets of the country.
Buyers of RE through competitive prices and transparent and flexible procurement and RE sellers by providing access to pan-India market.