The Central Electricity Regulatory Commission (CERC) has recently approved introduction of the Green Term-Ahead Market (Renewable Energy) Contracts at Indian Energy Exchange Ltd.
Indian Energy Exchange Limited (IEX) proposed that the contract will provide additional avenues to the RE generators for sale of renewable energy and obligated entities to fulfill their RPOs.
IEX highlighted that the proposed contract will provide a market-based mechanism where RE surplus and RE deficit States can trade RE and balance their RPO targets.
This proposal would lessen the burden on RE-rich Order on 18 States and incentivize them to develop RE capacity beyond their own RPO,it added.
IEX also highlighted that the proposed contract will promote RE merchant capacity addition which will eventually help in achieving RE capacity addition targets of the country.
Majority of the stakeholders including POSOCO have largely welcomed the proposal for introduction of GTAM in the exchange platform though some of them have raised concerns regarding issues viz. liquidity in the market, flexibility to the generators, deviation settlement etc.
GTAM contracts are divided into two sub-segments, namely solar and non-solar sub-segments. In the solar sub-segment, only electricity generated from solar energy sources shall be traded while in non-solar segment, electricity generated from renewable energy sources other than solar energy sources shall be traded.
Commission approves the proposal of G-TAM Contracts by IEX and further directed to incorporate appropriate provisions in its Bye laws, Rules and Business Rules with respect to introduction of GTAM Contracts.
To know more about the order refer to the document below: