Minister of power and renewable energy launches `Green Day Ahead Market’

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.

Announcing the launch of GDAM, he said the set  of reforms in the energy sector will allow any interested party  to set up renewable energy capacity and sell it to Discoms / industries. Advantages of free ISTS will be available and open access will be granted within 15 days. Large industries can go green as doing business becomes simpler, he added.

Reiterating the government’s policy of reducing dependency on imported sources of fossil  fuel, the minister said the government is working to ways to put in place the Green Hydrogen Mission put in motion by the prime minister.

Speaking at the event, power secretary Alok Kumar stated that this is a day for celebration as a unique product has been launched for the energy market.

“Energy transition is happening across the world and India is also committed to energy transition from fossil fuel to non-fossil fuel. Accordingly, the dynamics of the power market is changing. The buyer’s behavior is shifting from long term contracts to short term contracts and also towards the power market. Thus, this new initiative will help in enabling this energy transition,” he said.

The launch of the green day-ahead market will deepen the green market and will 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, he said.

Market-based competitive prices will provide another option to renewable generators to sell power as well as accelerate the renewable capacity addition towards the government’s vision of building India as a sustainable and efficient energy economy, he stated.

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, he added. 

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.

The Green Day Ahead Market will operate in an integrated way with the conventional day-ahead market. The exchanges will allow market participants to submit bids together for both conventional and renewable energy through separate bidding windows. The clearance will take place in a sequential manner - renewable energy bids will be cleared first in accordance with the must run status of the renewables, followed by conventional segment. This mechanism will allow renewable energy sellers to subsequently bid in the conventional segment should their bids remain uncleared in the green market. There will be separate price discoveries for the both the conventional and renewables.