Indian Energy Exchange on Wednesday said it proposes to commence operations on Green Term-Ahead Market from Friday. The exchange has already conducted mock trading session on August 18 which saw good participation from its members and partners, an IEX statement said.
Power bourses- Indian Energy Exchange and Power Exchange of India received approval from the Central Electricity Regulatory Commission on August 17 2020 to launch the Green Term-Ahead Market (G-TAM).
As a signatory to the Paris Climate Agreement 2016, India has committed to install 450 GW of renewable capacity by the year 2030. IEX statement said the consumers both in India as well as globally are increasingly preferring sustainable energy over conventional.
The introduction of green markets on the exchange platform is a significant milestone which will go a long way in facilitating consumers make a choice, accomplishment of national green capacity targets, and enabling integration of renewable energy in the most flexible and efficient way, it said.
The market will offer trade in four types of green term-ahead contracts -Green Intra-day contracts, Day-ahead Contingency contracts, Daily Contracts and Weekly contracts. There will be separate contracts for Solar and Non-Solar energy to facilitate Solar and Non-Solar Renewable Purchase Obligations fulfillment, it added.
“The energy ecosystem around us is evolving and a rapid transformation has been underway. The policy makers and regulatory authorities are pro-actively deliberating introduction of competitive market-based models towards meeting sustainable energy economy aspirations," IEX Managing Director and CEO Rajiv Srivastava said.
He further added, “CERC approval to introduce green market on Exchange platform is a welcome, much awaited and a landmark development from a holistic larger canvas of the energy sector. As India moves towards building a sustainable energy economy, we are excited about this new chapter which offers choice to consumers and will play a key role in achieving the national renewable aspirations.”
The introduction of GTAM along with the recently launched real-time trading in electricity will work in tandem to support seamless integration of RE power. The GTAM will greatly support the renewable energy generators as well as the distribution utilities in trading through market platform. The new market segment will support states with surplus renewables to sell while the buyers will be able to procure energy as well as meet the renewable purchase obligations, IEX said.
[source: Economic Times, 19-08-2020]