The wait for a real-time electricity market is finally over. The Indian Energy Exchange, India’s energy trading platform, launched the Real-Time Electricity Market (RTM) on its platform. During the day, there will be 48 auction sessions with delivery of power within one hour of closure of the bid session.
Power sector regulator, Central Electricity Regulatory Commission, has been looking at making the power market dynamic by enabling trade in electricity through half-hourly auctions.
This initiative will help the distribution utilities to manage power demand-supply variation and meet 24x7 power supply aspirations. The utilities presently manage unplanned changes in schedule through the Deviation Settlement Mechanism and in the process, end up paying penalties.
Through RTM, the penalties will reduce as the dependency on deviation framework will come down. It will also help distribution utilities to manage the challenge of intermittency associated with renewables.
“With the launch of RTM, the Indian energy markets are moving towards global standards of electricity trading and establishing the new energy order in the country. It will support the utilities in reducing dependence on grid deviation framework, of the order of 20 BU in fiscal year 2020,” said Rajiv Srivastava, CEO and Managing Director, IEX Ltd.
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