Focus: Prelims, GS-III Environment and Ecology
Why in news?
As a first step towards Greening the Indian short-term power Market – the Minister of State (IC) Power and New & Renewable Energy & Minister of State (Skill Development and Entrepreneurship), launched pan-India Green Term Ahead Market (GTAM) in electricity.
Introduction to GTAM
The Government of India’s target of 175 GW RE Capacity by 2022 is driving accelerated renewable penetration pan-India.
- Green Term Ahead Market contracts will:
Allow additional avenues to the RE generators for sale of renewable energy;
- Enable Obligated entities to procure renewable power at competitive prices to meet their Renewable Purchase Obligations (RPO);
- Provide a platform to environmentally conscious open access consumers and utilities to buy green power.
Benefits of GTAM
- The introduction of GTAM platform would lessen the burden on RE-rich States and incentivize them to develop RE capacity beyond their own 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 sector.
- 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
Key features 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.
- 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.