News: Union Power Minister has launched a pan-India Green Term Ahead Market(GTAM) in electricity as a first step towards greening the Indian short term power market.
Facts:
- GTAM: It is an alternative new model introduced for selling off the power by the renewable developers in the open market without getting into long term PPAs.
- It aims to benefit buyers of RE through competitive prices and transparent and flexible procurement.Sellers will also be benefitted by getting access to Pan India Market.
- Features:
- Transactions through GTAM will be bilateral in nature with clear identification of corresponding buyers and sellers.
- The GTAM contracts will be segregated into Solar RPO( Renewable purchase obligation) & Non-Solar RPO.
- The market will offer trade in four types of green term-ahead contracts i.e. Green Intra-day contracts, Day-ahead Contingency contracts, Daily Contracts and Weekly contracts.
- Significance:
- The GTAM platform would lessen the burden on RE-rich States and incentivize them to develop RE capacity beyond their own RPO.
- GTAM platform will lead to an increase in the number of participants in the renewable energy sector.
- It would promote Renewable Energy(RE) merchant capacity addition and help in achieving RE capacity addition targets of the country.
Additional Facts:
- Renewable Purchase Obligation(RPO): It mandates all electricity distribution licensees should purchase or produce a minimum specified quantity of their requirements from Renewable Energy Sources.
