CERC approves exclusive renewable energy trading in IEX
The Central Electricity Regulatory Commission (CERC) has approved the proposal of the Indian Energy Exchange (IEX) to introduce contracts for exclusively trading renewable energy on its platform. The new mechanism opens up options for power distribution companies (discoms) to resell renewable power that they procure from developers. IEX said it has already conducted mock trading session on Tuesday and plans to commence the trading from August 21. There will be separate provisions for solar and non-solar energy for each contract.
IEX expects G-TAM to also provide more options to discoms for fulfilling renewable purchase obligations (RPO), encourage new capacity addition and address the uncertainties around signing of long term power purchase agreements (PPAs) and cost recovery issues of renewable energy players. The green term-ahead-market (G-TAM) will work on four types of contracts — intra-day, day ahead contingency, daily and weekly. Prices will be discovered through ‘continuous trading’, where the highest ‘buy’ order and lowest ‘sell’ order gets the priority.
