Power Exchange of India Ltd (PXIL) has announced the launch of the Green Term Ahead Market (GTAM) which will have both solar and non-solar electricity segments.
GTAM is a new substitute model for trading in renewable energy ensuing the CERC approval. This new mechanism has been announced for selling off the power by the renewable developers in the open market without getting into long-term PPAs.
"After attaining success and market leadership in the Term Ahead Market (TAM) segment, PXIL, India’s first institutionally promoted power exchange by NSE and NCDEX has launched the Green-Term Ahead Market (GTAM) on its transaction platform on 24th March 2021," a PXIL declaration said.
According to the declaration, the development took place after receiving approval from the Central Electricity Regulatory Commission (CERC) on March 19, 2021.
To familiarize the market participants about the product and its features, the PXIL also steered two virtual mock sessions.
Vedanta SEZ and Himachal Pradesh SEB (state electricity board) were amongst the first set of participants in this segment.
At present, the PXIL holds above 60 percent market share on an average in the Term Ahead Market segment which is projected to increase with the launch of GTAM.
In the market, the PXIL will offer trade-in two types of green term-ahead contracts, Intra-day Contracts and Any-day Contracts in both solar and non-solar segments.
Prabhajit Kumar Sarkar, MD, and CEO, PXIL, said, "As our country continues on its path of transition towards a green and sustainable future with large scale integration of renewable energy, PXIL''s Green TAM segment would help participants fulfill their energy needs using renewable energy sources. The PXIL has played a leadership role in developing the Term Ahead Market segment on the power exchanges through innovative offerings and high service levels and looks forward to delivering the same quality of experience in the Green TAM segment as well."
The Government of India’s target of 175 GW RE (renewable energy) capacity by 2022 is driving the growth of the renewable energy industry.
The Green Term Ahead Market contracts will permit the RE generators the flexibility to map their generation profile and at the same time, purchasers will have an avenue to meet their Renewable Purchase Obligations (RPO) requirements.
The GTAM platform will also lead to an increase in the number of participants in the renewable energy sector and benefit buyers of RE through competitive prices and transparent and flexible procurement. It will also benefit RE sellers by providing access to the pan- India market.
The PXIL will endure to bring in new products and services to help transform the electricity market and make India future-ready.
"We are determined to play a critical role in providing competitive efficiency through innovation, services, cost-efficiency, and all such parameters that can enable the creation of a thriving power market," it said.