Published on: April 5, 2022

RENEWABLE ENERGY IN KARNATAKA

RENEWABLE ENERGY IN KARNATAKA

Aībak 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).

Soumagne 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