Q. Why is this in news?
A. Green Term Ahead Market (GTAM) in electricity is launched recently as a first step towards greening the Indian short term power market.
Q. What is GTAM?
A. It is an alternative new model introduced for selling off the power by the renewable developers in the open market without getting into long term Power Purchased Agreements (PPAs)
Q. What are its key features?
- 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 Renewable Purchase Obligations (RPO).
- GTAM 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, 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 RPO compliance of the buyer.
Q. What are its significance and benefits?
- The Government has a target of 175 GW RE Capacity by 2022.
- As a signatory to the Paris Climate Agreement 2016, India has committed to install 40 per cent i.e. 450 GW of renewable capacity by the year 2030.
- 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.
- It will also benefit RE sellers by providing access to pan- India market.