MNRE launches Green Term Ahead Market for electricity

Union Minister R.K. Singh has launched the Green Term Ahead Market (GTAM) for electricity, a move that will lead to an increase in the participants in the renewable energy sector.   

Features of GTAM:

• The GTAM contracts will allow additional avenues to renewable energy (RE) generators for sale of renewable energy.

• It will enable obligated entities to procure renewable power at competitive prices to meet their Renewable Purchase Obligations (RPOs) and provide a platform to environmentally conscious open access consumers and utilities to buy green power.

• Transactions through GTAM will be bilateral in nature with clear identification of corresponding buyers and sellers. Thus, there will not be any difficulty in accounting for RPO.  

• The GTAM contracts will be segregated into Solar RPO and Non-Solar RPO as RPO targets are also segregated. 

• There will be daily and weekly contracts. Bidding will take place on a megawatt hour (MWh) basis.

• The price discovery will take place on a continuous basis. Subsequently, looking at the market conditions, open auction can be introduced for daily and weekly contracts.

• The  energy scheduled through GTAM contract shall be considered as deemed RPO compliance of the buyer.

Benefits of GTAM:

• The country’s target of 175 GW RE capacity by 2022 is driving accelerated renewable penetration. The initiative will help in achieving the RE capacity addition targets of the country.

• It would lessen the burden on RE-rich states and incentivise them to develop RE capacity beyond their own RPO.

• It would promote RE merchant capacity addition and help in achieving RE capacity addition targets of the country.

• GTAM will lead to an increase in the number of participants in the renewable energy sector and benefit buyers of RE through competitive prices and transparent and flexible procurement. 

• The initiative will benefit RE sellers by providing access to the market across India. 

• It will also benefit buyers of RE with competitive prices and transparent and flexible procurement.

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