Shri R K Singh, Union Minister of Power & New and Renewable Energy, launched the new market segment, Green Day Ahead Market (GDAM).
“We are opening doors for renewable energy. In this new era of continuous reforms including the launch of GDAM today, any interested party can set up and sell renewable energy,” Singh said during the launch.
The launch will also 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, the Power Ministry said in a statement.
“Benefits of free ISTS (inter-State transmission system) will be available for renewable energy and open access will be available within 15 days,” Singh said.
The big industries can go green and the government would make efforts to make business simpler and GDAM is a step in that direction, he added.
Singh stated the we want to reduce our dependency on imported sources of fossil fuel. The government is working to putting in place the Green Hydrogen Mission under the guidance of Hon’ble Prime Minister, he added.
The distribution utilities would also be able to sell surplus renewable power generated in their area. The obligated entities (distribution licensee, open access consumers and captive power consumers) would also be able to meet the RPO target by directly buying green power from the power exchange(s). The non-obligated entities will be able to buy power on voluntary basis and help increasing the share of green power.
The introduction of GDAM is expected to create a domino effect that will lead to a gradual shift from PPA based contract to market-based models which will build and deepen the markets to the next level, paving the way for India to meet its ambitious target of 450 GW green capacity by 2030, said the statement.
The other benefits of participating in the GDAM would be reduction of curtailment of green power, unlocking untapped renewable energy potential, ensuring instant payment to RE generators ie on the day of delivery itself.
National Load Despatch Centre (NLDC), POSOCO, as the Nodal Agency, has set up the latest technologies and communication infrastructure for facilitating the Green Day Ahead Market.
Speaking on the event Secretary Power Shri Alok Kumar stated that this is a day for celebration as a unique product has been launched for the energy market.