The launch of the green day-ahead market will deepen the green market and will provide competitive price signals, besides offering an opportunity to the market participants to trade in green energy, in the most transparent, flexible, competitive, and efficient manner, power and renewable energy minister R K Singh said on Monday.
He said through its recent initiatives the government has opened the renewable energy sector to enable anyone to set up the capacity and sell it to distribution companies and industries. “Advantages of free ISTS (inter-state transmission system) will be available and open access will be granted within 15 days. Large industries can go green. Our efforts have been to make doing the business simpler and GDAM (green day ahead market) is a step in this direction,” he said.
The market-based competitive prices will provide another option to renewable generators to sell power as well as accelerate the renewable capacity addition towards the government’s vision of building India as a sustainable and efficient energy economy, Indian Energy Exchange chairman S N Goel said.
Power secretary Alok Kumar said the green day ahead market would help green projects facing curtailment, unlocking untapped renewable energy potential and ensuring instant payment to renewable energy generators.
The Green Day-ahead market will operate in an integrated way with the conventional day-ahead market. IEX will offer the market participants to submit bids together for both conventional and renewable energy through the separate bidding windows.
The clearance will take place in a sequential manner – renewable energy bids will be cleared first in accordance with the must-run status of the renewables, followed by conventional segment. This mechanism will allow renewable energy sellers to subsequently bid in the conventional segment should their bids remain uncleared in the green market. There will be separate price discoveries for both the conventional and renewables, an official statement said.
PXIL managing director Prabhajit Kumar Sarkar said, “ESCerts trading will take forward and diversify amongst participants the benefits of the PAT Cycle-II, which has reportedly prompted savings of 13.28 million toe of energy for the country resulting in absolute saving of more than Rs. 30,000 crore for sustainable growth of the country.”
