Green Day Ahead Market is a platform for selling renewable energy to the various industries and discoms. Anyone can sell renewable energy here. The introduction of GDAM is a step towards opening the door to renewable energy. This allows renewable energy companies to set up and sell renewable energy.
Highlights
GDAM was launched in the month of October 2021 by the Ministry of Power and New Renewable Energy. The GDAM was created to help India reach its goal of 450 GW of green energy by 2030. This makes India the first country to have a monopoly market for renewable energy. Renewable energy is traded here daily. Power System Operation Corporation Limited and National Load Dispatch Center are the nodal agencies that sets up the technology and infrastructure needed to launch the Green Day Ahead Market. GDAM gives energy companies the opportunity to create a market instead of losing income if Discom refuses to buy electricity.
Working of this platform
GDAM works in tandem with the traditional day-ahead market. However, both have their own pricing mechanism. Participants submit their bids in a separate bid window. However, when it comes to approval, renewable energy takes precedence. After approval, power will be distributed the next day. In addition, the seller receives immediate payment on the same day of delivery.
Benefits
GDAM offers competitive prices. It provides a competitive, transparent, efficient and flexible platform for trading renewable energy. Renewable energy producers will be able to sell electricity and increase their energy capacity when prices become competitive. GDAM also enables intergovernmental transmission. By using this newly opened platform, the various distributors across the nation will be able to sell their surplus renewable energy in a very easy manner. Home consumers, open access consumers, and distribution licensees can now reach their RPO goals by purchasing green electricity directly.
The benefits of the free InterState Transmission System will be available on renewable energy and open access will be available within 15 days. Other benefits of GDAM include reduced reductions in green electricity, guaranteed immediate payment to renewable energy generators on the day of delivery itself, and unleashing the potential for renewable energy unleashed in India.
Importance of this platform
The world is undergoing a rapid phase of energy transformation. India is also in the process of switching from non-renewable resources to renewable resources. India has also recently seen significant changes in buyer behavior. We have shifted from long-term contracts to short-term contracts. GDAM supports this migration. It also facilitates domestic green energy integration. This will result in a gradual transition from power purchase agreement-based contracts to market-based models.
