IEX Launches GTAM

CERC has Accorded Approval

The Indian Energy Exchange (IEX) launched the Green Term-Ahead Market (GTAM) on its power trading platform after receiving approval from the Central Electricity Regulatory Commission (CERC). CERC accorded its approval through an order dated August 17, 2020.

The IEX had filed a petition with the CERC regarding the same in 2018; at a time when India witnessed expansion of open access consumers who were looking for avenues other than power purchase agreement (PPA) to trade power.

In its order, the CERC also specified that as the GTAM was following all principles of the current term ahead market (TAM) at IEX’s platform, the scheduling will be according to norms laid down in the CERC (Open Access in Interstate Transmission) Regulations of 2008.

According to an IEX release, “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 Obligation (RPO) fulfillment.

Rajiv Srivastava, Managing Director and CEO, IEX said, “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.”

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.

According to the commission’s order renewable energy traded on GTAM will account towards RPO of entities. The minimum quantum for bidding will be 220 kW and tick size will be 0.1 MW. For GTAM transactions interstate transmission charges and losses will be waived off.

CERC has also asked IEX to incorporate appropriate provisions in its “Bye laws, Rules and Business Rules” with respect to introduction of GTAM contracts and submit it within two weeks.

GTAM will be a boon for the renewable energy sector. It will help do away with the need for long-term PPA for entire project capacity. Generators can keep a portion of the capacity free from PPAs and trade on GTAM and make larger profits as increasing number of open access consumers are turning to renewable energy to offset their emissions or to fulfil RPO. It will also be an avenue for trading in extra power generated.

Renewable energy rich states like Tamil Nadu that curtail from wind projects during peak seasons can now trade on this platform and make profit and pay back dues on time. For the past two years, India’s solar PV and wind energy project installations have slowed down, GTAM will provide a much-needed boost.

Recently, the IEX launched the real-time electricity market (RTM) on its platform, a move that will help utilities buy and sell power just an hour before the requirement.

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Saumy Prateek

Saumy Prateek

Saumy has been a writer with Reuters, Mercom India and Rystad Energy.

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