PXIL launches green term ahead market
This new mechanism has been introduced for selling off the power by the renewable developers in the open market without getting into long term PPAs
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New Delhi: Power Exchange of India Ltd (PXIL) has launched of Green Term Ahead Market (GTAM) which will have both solar and non-solar electricity segments.
GTAM is a new alternative model for trading in renewable energy following the CERC approval. This new mechanism has been introduced for selling off the power by the renewable developers in the open market without getting into long term PPAs. "After attaining success and market leadership in the Term Ahead Market (TAM) segment, PXIL, India's first institutionally promoted power exchange by NSE and NCDEX has launched the Green-Term Ahead Market (GTAM) on its transaction platform on 24th March 2021," a PXIL statement said. According to the statement, the development took place after receiving approval from the Central Electricity Regulatory Commission (CERC) on March 19, 2021. To familiarise the market participants about the product and its features, the PXIL also conducted two virtual mock sessions.
Vedanta SEZ and Himachal Pradesh SEB (state electricity board) were amongst the first set of participants in this segment. Currently, the PXIL holds above 60 per cent market share on an average in the Term Ahead Market segment which is expected to increase with the launch of GTAM. In the market, the PXIL will offer trade in two types of green term-ahead contracts, Intra-day Contracts and Any-day Contracts in both solar and non-solar segments. Intra-day Contracts are structured as a static contract (pre-defined delivery slots to place bids) and Anyday Contracts are structured as dynamic contracts (user selected slots for delivery during the day as well the days of delivery).
The combination of the contracts covers the delivery period starting from few hours upto 11 days from the trade. Prabhajit Kumar Sarkar, MD and CEO, PXIL, said, "As our country continues on its path of transition towards a green and sustainable future with large scale integration of renewable energy, PXIL's Green TAM segment would help participants fulfill their energy needs using renewable energy sources.
The PXIL has played a leadership role in developing the Term Ahead Market segment on the power exchanges through innovative offerings and high service levels and looks forward to delivering the same quality of experience in the Green TAM segment as well."
