Green Term Ahead Market (GTAM) In Electricity

• 02 Sep 2020

( 01 September, 2020, Ministry of New & Renewable Energy, www.pib.gov.in )

• On 1^st September the Ministry of New & Renewable Energy launched pan-India Green Term Ahead Market (GTAM) in electricity.
• It will accelerate renewable penetration pan-India also compliment Government of India’s target of 175 GW RE Capacity by 2022.

Benefits of this Initiative

• The introduction of GTAM platform would lessen the burden on RE-rich States and incentivize them to develop RE capacity beyond their own Renewable Purchase Obligations (RPO).
• This would promote RE merchant capacity addition and help in achieving RE capacity addition targets of the country.
• GTAM platform will lead to increase in number of participants in renewable energy
• It will benefit buyers of RE through competitive prices and transparent and flexible procurement. It will also benefit RE sellers by providing access to pan- India market.

Mechanism of GTAM

• Transactions through GTAM will be bilateral in nature with clear identification of corresponding buyers and sellers, there will not be any difficulty in accounting for RPO.
• GTAM contracts will be segregated into Solar RPO & Non-Solar RPO as RPO targets are also segregated.
• Further, within the two segments GTAM contracts will have Green Intraday, Day Ahead Contingency, Daily and Weekly Contracts
• Green Intraday Contract & Day Ahead Contingency Contract – Bidding will take place on a 15-minute time-block wise MW basis.
• Daily & Weekly Contracts – Bidding will take place on MWh basis. Both buyers and sellers can submit the bid, however the seller will provide profile in terms of 15-minute time block wise quantity (MW) along with the price (Rs/MWh). After the contract gets executed scheduling will take place as per the profile. In case of multiple buyers, the profile will get allocated on a pro-rata basis.
• Price discovery will take place on a continuous basis i.e. price time priority basis. Subsequently, looking at the market conditions open auction can be introduced for daily & weekly contracts.
• Energy scheduled through GTAM contract shall be considered as deemed RPO compliance of the buyer.