Economics

Power Minister launches Green Term Ahead Market for electricity

The introduction of GTAM platform would lessen the burden on Renewable Energy (RE) rich states and incentivize them to develop RE capacity beyond their own Renewable Purchase Obligations (RPO).

In News

  • The Union Power Minister has launched pan- India Green Term Ahead Market (GTAM) in electricity on 1st

Renewable Energy in India

  • The Government of India’s target of RE is of 175 GW RE capacity by 2022.
  • It is driving accelerated renewable penetration pan-India.

In Focus: Green Term Ahead Market (GTAM)

  • It will enable trading in renewable energy.

Objective:

  • The objective of the GTAM is ‘greening’ the Indian short term power market.

Significance of GTAM

  • Higher RE Generation
    • The introduction of GTAM platform would lessen the burden on Renewable Energy (RE) rich states and incentivize them to develop RE capacity beyond their own Renewable Purchase Obligations (RPO).
    • This would promote RE merchant capacity addition and help in achieving RE capacity addition targets of the country.
    • Green Term Ahead Market contracts will allow additional avenues to the RE generators for sale of renewable energy.
  • Increased Participation in RE Market
    • GTAM platform will lead to increase in number of participants in renewable energy sector.
    • It will benefit buyers of Renewable Energy (RE) through competitive prices and transparent and flexible procurement.
    • It will also benefit RE sellers by providing access to pan- India market
  • Competitive Prices
    • It would enable obligated entities to procure renewable power at competitive prices to meet their Renewable Purchase Obligations (RPO).
      • Under the RPO, bulk purchasers like discoms, open access consumers and capacitive users are required to buy a certain proportion of clean energy.
    • Environmental Benefits
      • It will provide a platform to environmentally conscious open access consumers and utilities to buy green power.
union-power-minister-launches-green-term-ahead-market-gtam

Key Features of GTAM

  • Bilateral Transactions
    • Transactions through GTAM will be bilateral in nature with clear identification of corresponding buyers and sellers.
    • This will ensure no difficulty in accounting for RPO.
  • Categories of Renewable Purchase Obligations
    • GTAM contracts will be segregated into Solar RPO & Non-Solar RPO as RPO targets are also segregated.
  • Category of Contracts
    • Within the two segments GTAM contracts will have Green Intraday, Day Ahead Contingency, Daily and Weekly Contracts
      • Green Intraday Contract & Day Ahead Contingency Contract: In these, bidding will take place on a 15-minute time-block wise MW basis.
      • Daily & Weekly Contracts: In these, 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.
  • Pricing
    • Price discovery will take place on a continuous basise. price time priority basis.
    • Subsequently, looking at the market conditions, open auction can be introduced for daily & weekly contracts.
  • Status of Energy Scheduled
    • Energy scheduled through GTAM contract shall be considered as deemed RPO compliance of the buyer.

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