Context

As a first step towards the ‘greening’ of the Indian short term power market, the Government launched the pan-India Green Term Ahead Market (GTAM) in electricity.

About

• The GTAM platform is the first Exclusive product for the renewable energy sector in the world and is a step towards Greening the Indian short term power Market.
• The GTAM contracts will allow additional avenues to RE generators for sale of renewable energy, enable obligated entities to procure renewable power at competitive prices to meet their RPOs and provide a platform to environmentally conscious open access consumers and utilities to buy green power.
• The key features of GTAM include bilateral transaction (of RE) in nature with clear identification of corresponding buyers and sellers. Thus, there will not be any difficulty in accounting for RPO.
• Besides, the GTAM contracts will be segregated into Solar RPO and Non-Solar RPO as RPO targets are also segregated.
• The 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 and weekly contracts.
• The energy scheduled through GTAM contract shall be considered as deemed RPO compliance of the buyer.
• The country's target of 175 GW RE capacity by 2022 is driving accelerated renewable penetration.

Significance of the initiative

• Lessen the burden on energy-rich states: The introduction of GTAM platform would lessen the burden on Renewable Energy-rich States.
• Increased participants: The platform will lead to an increase in the number of participants in the renewable energy sector. 
• Transparent structure: It will benefit buyers of renewable energy through competitive prices and transparent and flexible procurement.
• Access to pan-India market: It will also benefit renewable energy sellers by providing access to the pan-India market. GTAM contracts will allow additional avenues to the renewable energy generators for sale of energy.