In a path breaking order, the Central Electricity Regulatory Commission (CERC) has approved the Indian Energy Exchange's (IEX) proposal for transactions in the green term ahead market (renewable energy) contracts (GTAM). This is in addition to existing non renewable or black power contracts.
Industry players say CERC has given nod for market-based support for renewable energy especially when the Centre has launched an ambitious project of capacity addition of renewables by 175GW.
IEX, which has a daily turnover of 150 million units in day ahead market (DAM) and 20 MUs in real time trading, had argued that in recent times although the renewable penetration has increased in the country, the participation of renewable energy in the existing DAM and term ahead market (TAM) segment has remained negligible (less than 1 per cent).
GTAM has been proposed to bridge this gap and provide a viable alternative for short term inter-State transactions in renewable energy. CERC has approved intra day day ahead (DAC) contracts, daily and weekly contracts and open action under GTAM.
IEX Director (Strategy & Regulatory Affairs) told Free Press Journal, ''The Green market proposed by us was to create a market for RE so that buyers are able to meet demand for power and renewable power obligations (RPO) together. Currently, most of the states are deficient in meeting RPO. RE rich states will be able to sell RE power to them. CERC has also allowed mechanism for RE rich states to sell excess green power through markets.'' He further said the approval of the green market is a milestone in creating a market based mechanism for RE.
''From a current capacity of 88 GW to a target of 178 GW, create big potential for markets to grow,'' said Mediratta. He added that IEX can launch trading in GTAM soon. GTAM has been proposed to provide an exclusive platform for trading of renewables. Allowing competition over the power exchanges would benefit in efficient price discovery. Going forward, as the market and technology would evolve and grid integration of RE becomes relatively easier, the RE generating sources can also compete with conventional power on equal footing in the DAM/TAM segment. Till such time the Commission was requested to approve GTAM for enabling inter-State trade in RE.
