Green Term Ahead Market (GTAM)
Union Minister R K Singh launched the Green Term Ahead Market (GTAM) for electricity. The move, that will lead to an increase in the participants in the renewable energy sector. The initiative will also help in achieving 175 GW renewable energy (RE) target of the country.
Key features of the GTAM
- It will lessen the burden on RE-rich states and incentivize them to develop RE capacity beyond their own RPO (Renewable Purchase Obligation). This would promote RE merchant capacity addition and help in achieving RE capacity addition targets of the country
- It will lead to an increase in the number of participants in the renewable energy sector and benefit buyers of RE through competitive prices and transparent and flexible procurement.
- The initiative will also benefit RE sellers by providing access to the market across India.
- The country’s target of 175 GW RE capacity by 2022 is driving accelerated renewable penetration
- GTAM contracts will
- Allow additional avenues to RE generators for sale of renewable energy
- Enable obligated entities to procure renewable power at competitive prices to meet their RPOs and
- provide a platform to environmentally conscious open access consumers and utilities to buy green power.
- It provides bilateral transaction (of RE) with clear identification of corresponding buyers and sellers. Thus, there will not be any difficulty in accounting for RPO.
- GTAM contracts will be segregated into Solar RPO and Non-Solar RPO as RPO targets are also segregated.
- The price discovery will take place on a continuous basis i.e. price time priority basis.
- The energy scheduled through GTAM contract shall be considered as deemed RPO compliance of the buyer.
Thus, the initiative is a first step towards greening the Indian short-term power market. This would promote RE merchant capacity addition and help in achieving RE capacity addition targets of the country.
Category: Economy & Banking Current Affairs