G-TAM

Subject: Economy

Context: In December, 90 million units of electricity were sold in G-TAM (Green Term Ahead Market) of India’s Biggest Energy Exchange, the IEX.

Concept:

G-TAM

Green Term Ahead Market (GTAM) in electricity launched as a first step towards greening the Indian short term power market.
It is an alternative new model introduced for selling off the power by the renewable developers in the open market on daily and short term basis without getting into long term PPAs.(Power Purchase Agreements).

Features of G-TAM:

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.
Further, within the two segments, GTAM contracts will have Green Intraday, Day Ahead Contingency, Daily and Weekly Contracts
Green Intraday Contract & Day Ahead Contingency Contract – Bidding will take place on a 15-minute time-block wise MW basis.
Daily & Weekly Contracts – Bidding will take place on an MWh basis.
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.
Energy scheduled through GTAM contract shall be considered as deemed Renewable Purchase Obligations(RPO) compliance of the buyer.

Significance

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 also 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.