MOP includes additional Green Day Ahead Market for exclusive trade in RE

The Ministry of Electricity has taken a number of measures to expand the market for green electricity and to send out competitive price signals.
The Electricity (Promoting Renewable Energy through Green Energy Open Access) Regulations, 2022, have been published in the Renewable Energy (RE) Sector to address issues that have long hampered open access expansion and to remove barriers to RE availability and utilisation. The rules lower the open access cap from 1 MW to 100 kW, allowing smaller consumers to buy RE as well. There is no cap on captive consumers.
In the event of a must-run power plant’s supply being curtailed, the RE generator is also permitted to sell power in the power exchange and recoup the cost, according to the electricity rules.
The purchase of electricity produced by renewable energy sources will become more affordable and competitive in 2025 due to a waiver of interstate transmission charges and losses on the transmission of the electricity generated from solar and wind energy sources for projects by June 2025.
Due to the intermittent and variable nature of RE generation, the Real Time Market (RTM), introduced in June 2020, enables DISCOMs and buyers to purchase power with an advance notice of one hour.
Green Day Ahead Market (G-DAM) and Green Term Ahead Market (GTAM) allow for the purchase of green energy through power exchanges, which is counted towards the obligated companies’ renewable purchase requirement.
The market for Renewable Energy Certificates (RECs) has been restructured as of December 5, 2022. The forbearance price and REC life have been increased to infinity. With the replacement of the solar and non-solar divisions with a single REC market, the market has also become fungible.
The Power Exchange now offers a second Green Day Ahead Market (GDAM) segment in addition to the existing Day Ahead Market (DAM) segment to enable the exclusive trading of renewable energy starting in October 2021. According to their eligibility requirements, the participants submit their bids in two parts, i.e., the quantity and price they are willing to buy or sell in GDAM and DAM. Participants can decide whether to transfer an unselected quantity from the GDAM to the DAM and can also set a different price for it.
The Green Term Ahead Market (G-TAM) sector, which has been operational since August 2020, consists of contracts for the trading of electricity produced by renewable energy sources. The G-TAM market is divided into three sub-segments: hydro, non-solar, and solar. Only electricity produced by solar energy sources is traded in the solar subsegment, while electricity produced by renewable energy sources other than solar energy sources is traded in the non-solar subsegment, and only electricity produced by hydro energy sources is eligible for compliance with the Hydro Purchase Obligation (HPO).
In this category, RE can be traded for time horizons of intra-day, day ahead contingency, daily, weekly, monthly, and any single-sided day contract, offering flexible power procurement up to 90 days as per the requirements of the participants. Between August 2020 and January 2023, there were 8509.49 million units exchanged on GTAM (MU).