2. Power can now be sold on the exchange

  1. Renewable energy companies have long had a grouse — often, the buyer of their power, usually a State government-owned utility, would refuse to buy their electricity, citing grid management issues. In such backdowns, the renewable energy generating company has no option but to suffer the loss of revenue.
  2. But now, with the launch of G-DAM, or the green-day-ahead-market by the Indian Energy Exchange, renewable energy companies have the option of selling their power on the exchange.

G- DAM

  1. G-DAM was formally launched. Sellers and buyers can submit sale or purchase bids during a window each day; the electricity would be delivered the following day.
  2. If an electricity distribution company, Discom, refuses to buy, the energy company now has the option of the market.
  3.  The GDAM was launched to help India achieve its aspiration of 450 GW of green energy by 2030.
  4. With this, India becomes the first country to launch a market exclusively for renewable energy.
  5. Here the renewable energy is traded on a day-ahead basis.
  6. The Power System Operation Corporation Limited is the nodal agency to set up the requisite technologies and infrastructure to launch Green Day Ahead Market.
  7. With GDAM, the energy companies will now have the option of a market rather than suffering the loss of revenue when a Discom refuses to buy their electricity.
  8. Earlier IEX, India’s bigger power exchange company, launched the G-TAM product, (green-term ahead \market) but that was not for sale or purchase of power the following day.
  9. ‘G-TAM’ has performed well; over 3 billion units have been sold.
  10. More importantly, the sellers will get paid the next day.