On September 1, 2020, Minister of State (MoS) (Independent Charge) for Power and New & Renewable Energy Raj Kumar Singh launched the Pan-India Green Term Ahead Market (GTAM) in New Delhi virtually, for electricity. GTAM is the World’s First Exclusive Product Market for the renewable energy sector.
GTAM will lead to an increase in the number of participants in the Renewable Energy Sector. It will benefit buyers of Renewable Energy (RE) by providing them competitive prices, and transparent, flexible procurement.
i.It will benefit RE sellers by providing them access to the Pan-India market.
ii.It will help in achieving the Government of India’s target of 175 GigaWatt (GW) RE Capacity by 2022.
iii.The initiative promotes RE merchant capacity addition and helps in achieving the RE capacity additions across the country.
iv.GTAM contracts will provide additional avenues to RE Generators for the sale of renewable energy.
v.It will enable Obligated Entities (i.e Power Distribution Companies, Captive Power Plants, and other Large Electricity Consumers) to procure renewable power at competitive prices to meet their Renewable Purchase Obligations (RPO).
Features of GTAM:
i.Transactions through GTAM will be bilateral (a Power Purchase Agreement (PPA) will be signed between the buyer and seller and generally facilitated by a trader for a little margin) in nature, which will enable clear identification of corresponding buyers and sellers and will reduce difficulty in accounting for RPO.
ii.Contracts will be segregated into Solar RPO & Non-Solar RPO, similar to RPO targets which are also segregated.
iii.In the two segments, GTAM contracts will have Green Intraday, Day Ahead Contingency, Daily, and Weekly Contracts.
- Bidding will take place on a 15-minute time-block wise MW basis in the Green Intraday Contract & Day Ahead Contingency Contract.
- For Daily & Weekly Contracts, bidding will take place on an MWh basis. Both buyers and sellers will submit the bid, the seller will provide a profile in terms of the 15-minute time block-wise quantity (MW) along with the price (Rs/MWh). In the case of multiple buyers, the profile will get allocated on a pro-rata basis.
iv.Price discovery will be taking place on a continuous basis (price-time priority basis).
v.The Energy scheduled through the GTAM contract will be deemed as RPO compliance of the buyer.
Recently Related News:
i.Raj Kumar Singh, MoS (IC) Power, and New & Renewable Energy stated that India will have around 60% of the installed capacity of the electricity generation from renewable resources by 2030.
ii.US Agency for International Development (USAID) has collaborated with the Ministry of New and Renewable Energy (MNRE)’s National Technical Institutions to increase US-India collaboration for clean energy development.
About Ministry of New and Renewable Energy (MNRE)
Minister of State (MoS) IC – Raj Kumar Singh
Headquarters – New Delhi