News Excerpt
Union Ministry of Power has launched a pan-India Green Term Ahead Market (GTAM) for buy and sale of Renewable Energy (RE). GTAM is first exclusive product for renewable energy sector in the world.

Pre-Connect
Indian Energy Exchange Limited (IEX)
•    It is the first and largest energy exchange in India providing a nationwide, trading platform for physical delivery of electricity.
•    It provides Renewable Energy Certificates and Energy Saving Certificates.
•    It enables efficient price discovery and increases the accessibility and transparency of power market in India while also enhancing the speed and efficiency of trade in electricity.
•    IEX is a publicly listed company with NSE and BSE.

Some of Renewable Energy initiatives in India
•    Government is facilitating developers by allowing FDI through the automatic route.
•    Government has taken active steps such as-Green Energy Corridor, Wind-Solar hybrid policy, solar parks and ultra-mega solar parks.
•    42 solar parks of aggregate capacity 23,499 MW have been approved.
•    The CPSU scheme aims to promote domestic solar manufacturing, was being run by the Solar Energy Corporation of India (SECI).
•    Programs such as PM-KUSUM, solar rooftop phase II etc. have been introduced in the recent past.

About GTAM
    GTAM is a substitute new model introduced for buy and sale of the power produce by the renewable energy sources (RESs) in the open market without getting long term PPAs (Power Purchasing Agreements).
    GTAM will lead to an increase in the number of participants in the renewable energy sector and benefit buyers of RE through competitive prices and transparent and flexible procurement.
    GTAM would promote renewable energy merchant capacity and provide open market for competitive buying.
    Transactions through GTAM will be bilateral in nature with clear identification of corresponding buyers and sellers, there will not be any difficulty in accounting for RPO (Renewable Purchase Obligations).
    GTAM contracts will be segregated into Solar RPO & Non-Solar RPO as RPO targets are also segregated.
    Ministry of Power also mentioned that other products to be introduced in power market for promotion of Renewable Energy are in the pipeline and would be introduced soon.

Analytica
    GTAM would help in achieving national RE capacity addition targets of the country, e.g.- Government of India has committed to reduce the emissions intensity of GDP by 33% - 35% below the 2005 levels and increase share of non-fossil fuel in total capacity to ~40 % by 2030.
    India is the fourth largest CO2 emitter in the world. GHG emission from the new projects can be compensate by RE measures. GTAM has linked the RE to Power transmission grids. So, reliance on thermal and coal-based generation would be less.
    It delivers the duo benefits. Clean energy that don’t cast any externalities and meeting with the energy demand of India, e.g.- India’s power demand is expected to reach 15,820 TWH by 2040, renewable energy is set to play an important role. By 2030, renewable sources are expected to meet 40% of India’s power needs.
    It will benefit buyers of RE through competitive prices and transparent and flexible procurement. It will also benefit RE sellers by providing access to the pan- India market.
    It would insentiving RE producer’s rich states like Tamil Nadu and can facilitate supply to the deficient states.  
    GTAM would allow to reduce the burden on RE-rich States and motivate them to develop RE capacity beyond their own RPO.
    One Nation One Price can prevail as GTAM is pan India Initiative.

Conclusion
Renewable energy is likely to create a multiplier effect on all stakeholders. And Government is committed to increased use of clean energy sources and is already undertaking various large-scale sustainable power projects and promoting green energy heavily. Renewable energy has the potential to create many employment opportunities at all levels, especially in rural areas.