One Year On, Vedanta Emerges as Top Buyer On GTAM Market of IEX

Indian Energy Exchange, (IEX) celebrated the first anniversary of the start of trading on its its Green Term Ahead Market (GTAM) with a special conference.

IEX informs us that the GTAM has cumulatively traded 2744 MU of renewable energy in its first year comprising of 1267 MU volume in the solar segment and 1477 MU in the non-solar segment. The market discovered Rs 3.75 per unit as the avg price in first year with avg solar price at Rs 3.48 per unit and average non solar price at Rs 4.06 per unit.

The green market has done well to built a strong core of 100 participant in this time. Distribution companies from Karnataka, Telangana, Tamil Nadu and Himachal including RE generators like Choudhary Power, Bhilangana Hydro Power, Amplus Green, Adani solar and MRN Cane Power are a few key participants on the sell side. While the distribution companies like CESC, Haryana, DNH, Tata Power Company and DVC along with Industrial consumers like Vedanta, SAIL, Jindal Steel, Tata Steel etc. are the key participants on the buy side.

In the first year, Power Company Karnataka Limited (PCKL) has emerged as the top seller while Vedanta Limited as the top buyer in the Green Market.

Launched formally by Minister of Power and New & Renewable Energy R.K. Singh on 1 September’20, the green market offers  a key platform for green power generators, and distribution utilities who have surplus renewable energy, to trade among themselves and also support deficit entities  to meet their energy and RPO requirements in an integrated way.

Speaking on the occasion, G. Kumar Naik, Chairman, PCKL and Additional Chief Secretary to Government, Energy Department, Government of Karnataka, “The State of Karnataka has proud credentials of being a renewable – rich State with 15 GW of installed capacity base and another 9 GW of green capacity under implementation. PCKL has been successfully leveraging the recently introduced Real- Time Electricity Market and the Green Term – Ahead Market at IEX to sell our surplus renewable energy, as per the Govt of Karnataka’s decision to effectively integrate the renewable energy without undertaking RE power curtailment. This has helped Karnataka to reduce the renewable intermittency as well as strengthen the State’s grid security. These measures have been helping the PCKL/ESCOMs to save the precious financial resources, making it a win- win solution for the State (KPTCL) as well as the renewable energy generators.”

According to C Srinivasa Rao, Joint Managing Director, Telangana Transco, “The, Telangana DISCOMs have sold about 797 MU of solar energy from September 2020 to July 2021. It has helped the State in ensuring financial liquidity while also enabling us to channelize the surplus renewable energy into the market. The green market is an important part in India’s green energy shift and going forward, we will increasingly tap into the market segment”.

S N Goel, Chairman and Managing Director, IEX added that, “The inception of the green market has been a landmark milestone for our nation. Recently, on the eve of 75th Independence Day, the Honorable Prime Minister announced that India aspires to attain energy Independence by the year 2047. The market can play a catalyst role in facilitating our efforts towards achieving energy independence and building a green and sustainable energy economy in the most competitive and efficient manner. The forthcoming introduction of green day-ahead market will evolve the market further. In the mid to long term, gradual shift from PPA to market-based models will build and deepen the markets to next level, paving way for India to meet its ambitious 450 GW green capacity by 2030.”

Green Market: First Year Performance Highlights

– Total trade – 2744 MU comprising 1267 MU under Solar & 1477 MU under Non-solar
– Average Price – Rs 3.48 per unit for Solar; Rs 4.06 per unit for non-Solar
– Maximum trade volume in a single day – 153.1 MU on 16 July 2021
– Maximum trade volume in a month – 726 MU in July 2021
– Highest no. of participants in a month – 50 in July 2021
– Top 5 Buyers – Vedanta Limited, Calcutta Electric Supply Corporation (India) Ltd, Haryana Power Purchase Centre, DNH Power Distribution Corporation Ltd & Bihar State Power Holding Co. Limited.

– Top 5 Sellers – Power Company of Karnataka Ltd, Southern Power Distribution Company of Telangana Limited (TSSPDCL), Choudhary Power Projects Private Ltd, Bhilangana Hydro Power Ltd and Amplus Green Power Pvt. Ltd.