The Indian Energy Exchange (IEX) has got approval from the Central Electricity Regulatory Commission to launch green term-ahead market (G-TAM) on its platform.
The exchange conducted a mock trading session on Tuesday which saw good participation from its members and partners. It plans to start trading from August 21.
As a signatory to the Paris Climate Agreement 2016, India has committed to install 40 per cent that is 450 gigawatt of renewable capacity by 2030. Furthermore, consumers both in India as well as globally are increasingly preferring sustainable energy over conventional.
"The introduction of green markets on the exchange platform is a significant milestone which will go a long way in facilitating consumers make a choice, accomplishment of national green capacity targets, and enabling the integration of renewable energy in the most flexible and efficient way," said IEX.
The market will offer trade in four types of green term-ahead contracts -- green intra-day contracts, day-ahead contingency contracts, daily contracts and weekly contracts. There will be separate contracts for solar and non-solar energy to facilitate solar and non-solar renewable purchase obligations fulfillment.
"The energy ecosystem around us is evolving and a rapid transformation has been underway," said IEX Managing Director and CEO Rajiv Srivastava.
"The policymakers and regulatory authorities are pro-actively deliberating introduction of competitive market-based models towards meeting sustainable energy economy aspirations."
He said the CERC approval to introduce green market on exchange platform is a landmark development from a holistic larger canvas of energy sector.
"As India moves towards building a sustainable energy economy, we are excited about this new chapter which offers a choice to consumers and will play a key role in achieving the national renewable aspirations."
The introduction of G-TAM along with the recently launched real-time trading in electricity will work in tandem to support the seamless integration of renewable energy. The G-TAM will support renewable energy generators as well as the distribution utilities in trading through the market platform.
The new market segment will support states with surplus renewables to sell while the buyers will be able to procure energy as well as meet the renewable purchase obligations.
( With inputs from ANI )
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