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Contents
What is the News?
The Union Minister of Power & New and Renewable Energy has launched the Green Day Ahead Market (GDAM).
What is Green Day Ahead Market(GDAM)?
GDAM is a marketplace that will enable electricity generation and distribution companies to buy or sell renewable energy through open access on a day-ahead basis.
How will GDAM operate?
Green Day-ahead market will operate in an integrated way with the conventional day-ahead market.
The Exchanges will offer the market participants to submit bids together for both conventional and renewable energy through the 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 the conventional segment.
This mechanism will allow renewable energy sellers to subsequently bid in the conventional segment if their bids remain uncleared in the green market. There will be separate price discoveries for both conventional and renewables.
What are the advantages of the Green Day Ahead Market(GDAM)?
Firstly, it 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.
Secondly, it will provide another option to renewable generators to sell power as well as accelerate the renewable capacity addition.
Thirdly, it is expected to create a domino effect that will lead to a gradual shift from Power Purchase Agreement (PPA) based contracts to market-based models which will build and deepen the markets to the next level.
| Read more: Ministry of Power Redesigns Renewable Energy Certificate (REC) Mechanism |
Source: This post is based on the article “Union Minister of Power & New and Renewable Energy launches the Green Day Ahead Market (GDAM)” published in “PIB” on 25th October 2021.
