The Green Term Ahead Market (GTAM) can be a game changer for the renewable energy sector in India. Evaluate.
Renewable energy is the production of energy from sources which do not pollute the environment and which in theory are not at risk of depletion e.g., solar and wind. India as per world’s best practices has added hydro power to renewable energy.
How renewable energy is promoted:
- Subsidy for companies for setting up plants.
- Finance at cheaper rates.
- Renewable purchase obligation on the Gencos at ~15% of power.
- Customers can use ICT and net-metering to sell excess electricity back to Discoms.
- Present installed capacity of 175 GW to be increased to 450 GW by 2030.
Green Term Market Ahead:
- It is a national market for renewable energy. It will link the surplus states with that of the deficit states.
- True-price discovery possible.
- Future-contracts and spot-sale, both available.
- Solar, wind, hydro are all on for sale.
- It will count under the renewable purchase obligation.
- It is in sync with India’s participation in the International Solar Alliance & push towards green economy.
Way Forward:
GTAM is thus a step in the right direction and will help achieve UNDP’s sustainable development goal of clean and affordable electricity for all.