NEWS

Karnataka distribution companies (discoms) have become the top seller of renewable energy under the Green Term Ahead Market (GTAM) at Indian Energy Exchange Ltd. (IEX).

DETAILS

• Karnataka is a renewable rich State with a total installed capacity base of 15 GW (50% of it in solar) and is one of the pioneers in renewable energy addition in the country and a key stakeholder in achieving the country’s renewable energy (RE) goals
• It has already overachieved its target of 11 GW by FY 2022
• An additional 9 GW renewable capacity is in the pipeline, which is expected by 2030
• In another positive step, the State Cabinet last week cleared the Karnataka Renewable Energy Policy (2022-27) that looks at developing Karnataka as a hub of renewable energy generation
• Karnataka has sold 2.5 billion units of electricity under the Real-time Electricity Market (RTM) since the inception of the market segment in June 2020

GREEN TERM AHEAD MARKET (GTAM) IN ELECTRICITY

• Launched by Ministry of Power and New & Renewable Energy (MNRE)
• As a first step towards Greening the Indian short term power market
• Alternative new model introduced for selling off the power by the renewable developers in the open market without getting into long term PPAs.

BENEFITS

• Lessen the burden on the RE-rich States and incentivize them to develop RE capacity beyond their own RPO
• Benefit buyers of RE through competitive prices and transparent and flexible procurement
• Benefit RE sellers by providing access to the pan- India market

KEY FEATURES

• Transactions will be bilateral in nature with clear identification of corresponding buyers and sellers, there will not be any difficulty in accounting for RPO.
• 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