CERC approves IEX’s green term-ahead market

Electricity green term ahead market GTAM

Through an Order dated 17th August 2020, the Central Electricity Regulatory Commission (CERC) gave approval for the launch of the Indian Energy Exchange’s (IEX) Green Term-Ahead Market (GTAM). IEX had filed a petition with the CERC regarding the same in 2018. In its order, the CERC specified that as the GTAM was following all principles of the current term ahead market (TAM) at IEX’s platform, the scheduling will be according to norms laid down in the CERC (Open Access in Interstate Transmission) Regulations of 2008.

GTAM provides an opportunity for buyers looking to buy only renewable energy while earlier there was no source-based differentiation on power traded at IEX. The new mechanism also paves the way for transparent price discovery of electricity based on its source of generation.

Types of Green Term-Ahead Contracts

As per a statement by IEX, the market will offer trade in four types of green term-ahead contracts:

  • Green intra-day contracts,
  • Day-ahead contingency contracts,
  • Daily contracts
  • Weekly contracts.

There will be separate contracts for solar and non-solar energy to facilitate solar and non-solar renewable purchase obligation fulfilment. The minimum quantum for bidding will be 220 kW and tick size will be 0.1 MW. For GTAM transactions interstate transmission charges and losses will be waived off.

IEX had recently launched a real-time electricity market (RTM) on its platform. The RTM will help buyers purchase electricity just an hour in advance. The RTM has 48 auction sessions daily wherein power generators with surplus capacity can sell anytime during the day. The firm said the green term-ahead market along with RTM would support seamless integration of renewable power.

Recently, CERC had also given approval to the petition filed by Pranurja Solutions Ltd, to establish what will become the third power exchange in India after IEX and Power Exchange India Limited.

GTAM Power Trading Launched:

Consequently on 20th August, IEX launched GTAM on its power trading platform. On 22nd August 2020,  Amplus Solar announced that it had sold solar electricity in the open market on 20 August, becoming the first solar firm to trade on the newly launched Green Term-Ahead Market platform by Indian Energy Exchange (IEX).