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Indian Energy Exchange (IEX) on Wednesday said it will launch trading in green term-ahead market (G-TAM) on Friday, as it has received power regulator CERC nod for the same.
“The Indian Energy Exchange is delighted to announce that it has received approval from the Central Electricity Regulatory Commission (CERC), vide order dated August 17, 2020, to launch the Green (renewable power) Term-Ahead Market (G-TAM) on its platform,” an IEX statement said.
The exchange has already conducted a mock trading session on August 18, which saw good participation from its members and partners. It plans to commence the trading from Friday, August 21, it added.
As a signatory to the Paris Climate Agreement 2016, India has committed to install 40 per cent i.e. 450 GW of renewable capacity by the year 2030. The consumers in India as well as globally are increasingly preferring sustainable energy over conventional.
The introduction of green markets on the exchange platform is a significant milestone, which will go a long way in facilitating consumers make a choice, accomplishment of national green capacity targets, and enabling integration of renewable energy in the most flexible as well as efficient way.
The market will offer trade in four types of green term-ahead contracts -Green Intra-day contracts, Dayahead Contingency contracts, Daily Contracts and Weekly contracts.
There will be separate contracts for solar and non-solar energy to facilitate purchase obligations fulfilment.
“The energy ecosystem around us is evolving and a rapid transformation has been underway. The policymakers and regulatory authorities are pro-actively deliberating introduction of competitive market-based models towards meeting sustainable energy economy aspirations.
“CERC approval to introduce a green market on the Exchange platform is indeed a welcome, much-awaited and a landmark development from a holistic larger canvas of the energy sector. As India moves towards building a sustainable energy economy, we are excited about this new chapter which offers choice to consumers and will play a key role in achieving the national renewable aspirations,” IEX MD and CEO Rajiv Srivastava said.
The introduction of G-TAM along with the recently launched real-time trading in electricity will work in tandem to support the seamless integration of RE (renewable energy) power.
The G-TAM will greatly support the renewable energy generators as well as the distribution utilities in trading through the 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, it said.
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