Power Exchange India Limited had filed a petition seeking approval for the introduction of Green Term-Ahead Market (Renewable Energy) Contracts on its platform which has been provisionally approved by CERC.
The different type of contracts proposed by PXIL were:
a) Green Intra Day Contract: These contracts shall be traded by buyer/ seller prior to 2 hours 15 minute before delivery in a manner similar to the existing Intra Day contract with the exception that instead of an hourly contract in the case of Term Ahead Market, a 15-minute contract will be introduced for Green Intra Day Contracts. 15-minute contract granularity would help RE sellers to schedule their power more accurately as compared to one-hour duration contracts.
b) Green Day Ahead Contingency Contracts: These contracts shall be traded by buyer/ seller on (D-1) basis. The auction window shall operate daily from 15:00 hrs to 23:00 hrs and the Power Exchange shall issue 96 contracts of 15-minute duration each for next day delivery. These contracts will also be on 15-minute granularity for reasons similar to that in the case of the Green Intra Day Contract.
c) Green Weekly Contracts: These contracts shall provide for delivery from 00:00 hrs of Monday to 24:00 hrs of Sunday of the forthcoming week and shall be traded on Wednesdays/ Thursdays in a manner similar to the existing Weekly product in the physical segment. The buyers and sellers shall submit their bids for energy (in MWh) and delivery shall be subject to downward variation up to 15% of energy traded. The 15% downward variation in energy traded will be applicable on a daily basis and not for the week on net basis.
The buyers and sellers shall not have to define the time-blocks in which they would offtake or deliver the power respectively for the entire duration of the contract at the time of trading. However, after each successful trade, the sellers will
provide their supply profile on a 15-minute time-block basis for each delivery day of the contract by 07:00 hrs.
The supply profile provided by the sellers will be used for the purpose of scheduling the trade on day-ahead basis. The flexibility of providing daily scheduling to RE generators is critical since it will not be feasible for them to forecast their block-wise generation in advance for the contract duration without uncertainty and forecasting errors. The buyers would be informed by 08:00 hrs so that they are able to incorporate the supply profile received from the RE generators in their day ahead operational planning. With this schedule, the time and quantum of delivery for each specific time block will be finalised on day-ahead basis.
d) Green Any Day contracts: These contracts shall be traded by buyers/ sellers on daily basis and will allow the buyers/ sellers to trade energy to be scheduled on daily basis or multiples thereof. The buyer/ seller shall submit their bids for energy (in MWh) that they intend to transact in this contract and the delivery shall be subject to downward variation up to 15% of energy trade. The 15% downward variation in energy traded will be applicable on a daily basis and not for the week on net basis. The buyers and sellers shall not have to define the time-blocks in which they would offtake or deliver the power
respectively for the entire duration of the contract at the time of trading.
However, after each successful trade, the sellers will provide their supply profile on a 15-minute time-block basis for each delivery day of the contract by 07:00 hrs of the preceding day. The supply profile provided by the sellers will be used for the purpose of scheduling the trade on a day ahead basis. The buyers would be informed by 08:00 hrs so that they are able to incorporate the supply profile received from the RE generator in their day ahead operational planning.
With this schedule, the time and quantum of delivery for each specific time block will be finalized on a day-ahead basis.
Some other key highlights of PXIL’s request were to recognize G-TAM products purchased by the buyer as Green Energy eligible for meeting Renewable Purchase Obligation and exempt the Buyers and Sellers from payment of Point of Connection transmission charges and losses at the drawl/injection points respectively as this would help in reducing the cost of transactions in G-TAM at PXIL platform.
PXIL had also requested CERC to provide a mechanism to settle deviations in schedule from renewable sources without financially burdening the operation of Power exchanges and devise a mechanism that allows Distribution licensees or the generator having long term PPA with Distribution licensee but facing grid constraints within the state to Sell green power in G-TAM contract and help the counterpart Buyer of such transaction fulfill its Renewable Purchase Obligation target from the purchased green power.
PXIL had also requested for permit Hybrid projects to participate in G-TAM contract as non-Solar selling entities.
