He further said 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
New Delhi: Union Minister R K Singh on Tuesday 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. The initiative will also help in achieving the renewable energy(RE) capacity addition targets of the country.
“The introduction of GTAM platform would lessen the burden on RE-rich states and incentivize them to develop RE capacity beyond their own RPO (Renewable Purchase Obligation). This would promote RE merchant capacity addition and help in achieving RE capacity addition targets of the country,” Singh said in a statement issued by the renewable energy ministry.
He further said 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 also benefit RE sellers by providing access to the market across India. The country’s target of 175 GW RE capacity by 2022 is driving accelerated renewable penetration, the statement noted.
The GTAM contracts will allow additional avenues to RE generators for sale of renewable energy, enable obligated entities to procure renewable power at competitive prices to meet their RPOs and provide a platform to environmentally conscious open access consumers and utilities to buy green power, the statement said.
The key features of GTAM include bilateral transaction (of RE) in nature with clear identification of corresponding buyers and sellers. Thus, there will not be any difficulty in accounting for RPO.
Besides, the GTAM contracts will be segregated into Solar RPO and Non-Solar RPO as RPO targets are also segregated.
The 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, the statement said.
The energy scheduled through GTAM contract shall be considered as deemed RPO compliance of the buyer.
The renewable energy minister also mentioned that other products to be introduced in the power market for promotion of RE are in the pipeline and would be introduced soon.
Under the RPO, bulk purchasers like discoms, open access consumers and capacitive users are required to buy a certain proportion of clean energy.
Source: PTI
