RK Singh Unveils Real Time Market in Electricity; India Now in Few Global Markets

RK Singh Unveils Real Time Market in Electricity; India Now in Few Global Markets

Power and New & Renewable Energy Minister RK Singh have launched the pan-India Real-Time Market (RTM) in electricity, placing India amongst a league of few electricity markets in the world having such system.

RK Singh

RK Singh has launched the RTM through video conference in New Delhi, on Wednesday.

On explaining the significance of the RTM, RK Singh said that it is an organized market platform to enable the buyers and sellers across the country to meet their energy requirement closer to real-time of operation.

He further said “introduction of the real-time market will bring required flexibility in the market to provide real-time balance while ensuring optimal utilization of the available surplus capacity in the system. It will also help manage diversity in demand pattern in India with an organized market at a national level.”

Further, RTM would be for every 30 minutes in a day based on double-sided closed auction with a uniform price.

In this ‘Gate Closure’ concept has been introduced by the government for bringing in the desired firmness in schedules during market operating hours.

Here, buyers and sellers will have the option of placing their buy and sell bids for each 15-minutes time block.

Besides, the proposed RTM will provide an alternate mechanism for power distribution companies (Discoms) to access a larger market at a competitive price.

For power generators (Gencos) it will benefit by participating in the RTM with their un-requisitioned capacity. A mechanism has been provided for Gencos having a long-term contract and participating in this market to share the net gains with Discoms.

Also, National Load Despatch Centre-POSOCO is facilitating the necessary automation in coordination with power exchanges to ensure faster transactions and settlements in the RTM framework.

Moreover, this RTM is expected to help in mitigating challenges to the grid management due to intermittent and variable nature of renewable energy generation and therefore, help to integrate higher quantum of renewable energy resources into the grid.

Meanwhile, it is expected that shorter bidding time, faster scheduling, and defined processes (e.g. gate closure) are likely to enable the participants to access resources throughout all India grid, promoting competition. Additionally, it will also help in better portfolio management by utilities with efficient power procurement planning, scheduling, dispatch, and imbalance handling.

Singh concluded that it is a win-win situation for all stakeholders generators having opportunity to sell their surpluses, better management of variability of renewable energy generation, better utilization of transmission systems, Discoms having opportunity to buy or sell power and finally consumer getting reliable power supply.

Recently, Singh said that there is a need for the state governments to be also conjointly responsible for the financial health of their fully owned power distribution companies (Discoms).

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Manu Tayal

Manu is an Associate Editor at Saur Energy International where she writes and edits clean & green energy news, featured articles and interview industry veterans with a special focus on solar, wind and financial segments.