Green Day Ahead Market
The Green Day Ahead Market (GDAM) is a platform to sell renewable energy to Discoms and industries. Any person can sell renewable energy here.
About GDAM
GDAM was launched by the Union Ministry of Power and New Renewable Energy in October 2021. The GDAM was launched to help India achieve its aspiration of 450 GW of green energy by 2030. With this, India becomes the first country to launch a market exclusively for renewable energy. Here the renewable energy is traded on a day ahead basis. The Power System Operation Corporation Limited is the nodal agency to set up the requisite technologies and infrastructure to launch Green Day Ahead Market. With GDAM, the energy companies will now have the option of a market rather than suffering loss of revenue when a Discom refuses to buy their electricity.
Benefits of GDAM
The GDAM will offer competitive prices. It provides a transparent, competitive, flexible and efficient platform to trade renewable energy. The renewable energy producers will now be able to sell power and also boost their energy capacity as the prices become competitive. The GDAM also allows inter-state transmission. The distributors can now easily sell their surplus renewable energy. The captive power consumers, open access consumers and distribution licensee can now meet the RPO target by buying green energy directly.
Working of GDAM
The GDAM works along with the conventional day ahead market. However, they both have separate price discovery mechanism. The participants will submit their bids in separate bidding windows. However, when it comes to clearances, the renewables are given priority. After the clearances, the electricity is delivered the following day. Also, the sellers get instant payment on the same day of delivery.
Importance of GDAM
The world is witnessing rapid phase of energy transition. India is also in the process of transiting from non-renewable sources to renewable sources. Also, a significant change in the behaviour of buyers is witnessed in India lately. They have shifted from long term contracts to short term contracts. GDAM will aid this transition. Also, it will facilitate the integration of green energy in the country. It will bring in a gradual shift from PPA-based (Power Purchase Agreements based) contracts to market-based models.
