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GDAM And Escerts Trading On Energy Exchanges To Start From Today
The move will open the renewable energy sector and enable anyone to develop capacity and sell it to distribution companies and industries.
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India from Tuesday will kick start green day-ahead market (GDAM) and trading of energy saving certificates on power exchanges.
The move will open the renewable energy sector and enable anyone to develop capacity and sell it to distribution companies and industries. Union Minister for Power and Renewable Energy R.K. Singh on Monday described the GDAM as a mechanism which will deepen the green market and will provide competitive price signals, besides offering an opportunity to the market participants to trade in green energy in the most transparent, flexible, competitive, and efficient manner.
“Advantages of free ISTS (inter-state transmission system) will be available and open access will be granted within 15 days. Large industries can go green. Our efforts have been to make doing the business simpler and GDAM (green day ahead market) is a step in this direction,” he said.
Power secretary Alok Kumar said the move would help green projects facing curtailment, unlocking untapped renewable energy potential and ensuring instant payment to renewable energy generators.
How will GDAM work?
The Green Day-ahead market will operate in an integrated way with the conventional day-ahead market. Indian Energy Exchange (IEX) will offer the market participants to submit bids together for both conventional and renewable energy through separate bidding windows.
The clearance will take place in a sequential manner - renewable energy bids will be cleared first in accordance with the must-run status of the renewables, followed by conventional segment. This mechanism will allow renewable energy sellers to subsequently bid in the conventional segment should their bids remain uncleared in the green market. There will be separate price discoveries for both the conventional and renewables, an official statement said.
Energy Saving Certificates
'ESCerts' are the Energy Savings Certificates issued by the Central Government in the Ministry of Power to the Designated Consumer under sub-section (1) of section 14 (A) of Energy Conservation Act, 2001.
ESCerts is a tradable certificate for EE (energy efficiency) mandates under Energy Conservation Act 2001.
The ESCerts will be transacted every Tuesday of the Week on PXIL platform or as decided by CERC/BEE (Central Electricity Regulatory Commission/Bureau of Energy Efficiency).
Under the National Mission for Enhanced Energy Efficiency (NMEEE), the scheme of Perform, Achieve and Trade (PAT) is a regulatory instrument to reduce specific energy consumption in energy-intensive industries, with an associated market-based mechanism to enhance the cost-effectiveness through certification of excess energy saving which can be traded.
The PAT Cycle -I included eight sectors namely Aluminium, Cement, Chlor- Alkali, Fertilizer, Iron & Steel, Paper & Pulp, Thermal Power Plant and Textile.
Under the scheme PAT cycle-II three new sectors namely Refineries, Railways and DISCOMs were included.
(With Inputs from PTI)