Lok Sabha Question No. 1223 (UNSTARRED), answered on 2023-02-09
Subject: Competitive Price Signals
Ministry: POWER
Asked by: Magunta Sreenivasulu Reddy

## GOVERNMENT OF INDIA MINISTRY OF POWER LOK SABHA UNSTARRED QUESTION NO.1223

## ANSWERED ON 09.02.2023

## COMPETITIVE PRICE SIGNALS

1223.  SHRI MAGUNTA SREENIVASULU REDDY:

Will the Minister of POWER be pleased to state:

(a) the details of measures taken/being taken by the Government to deepen the green market and to provide competitive price signals;

- (b) the progress made in this regard along with,State/UT-wise;

(c) the details of new products like Green Day Ahead Market (G-DAM) and Green-Term Ahead Market (G-TAM); and

- (d) the expected benefits to be attained in this respect?

## A N S W E R

## THE MINISTER OF POWER AND NEW & RENEWABLE ENERGY

(SHRI R.K. SINGH)

(a) to (d) : Ministry  of  Power  has  taken  following  initiatives  to  deepen  the  market  for green electricity and to provide competitive price signals:

1. For  unshackling  the  Renewable  Energy(RE)  Sector,  i.e.  to  remove  barriers  in availability and utilisation of RE and to address the issues that have hindered the growth of open access for a long time, Electricity (Promoting Renewable Energy through Green Energy Open Access) Rules, 2022 have been issued. The Rules reduces the Open Access limit from 1 MW to 100 kW, which pave the way for small consumers also to purchase RE and there is no limit for Captive Consumers.
2. Electricity  (Promotion  of  generation  of  Electricity  from  Must-Run  Power  Plant) Rules, 2021 rules have been notified to provide that in the event of a curtailment of supply from a must-run power plant, the RE generator is also allowed to sell power in the power exchange and recover the cost.
3. Waiver  of  inter-State  transmission  charges  and  losses  on  transmission  of  the electricity  generated  from  solar  and  wind  sources  of  energy  for  the  projects  up  to  30 th June,  2025  will  make  the  electricity  purchase  from  renewable  energy  cheaper  and competitive.
4. Real Time Market (RTM) was introduced in June, 2020, this allows DISCOMs/Buyers to buy power with an advance notice of one hour and meet the challenges related to grid management due to intermittent and variable nature of RE generation.

.........2.

5. Green Term Ahead Market (GTAM) and Green Day Ahead Market (G-DAM) enables procurement of green energy through Power Exchanges which is accounted towards the Renewable Purchase Obligation of Obligated Entities.
6. The  Renewable  Energy  Certificate  (REC)  market  has  been  redesigned  effective from 5 th  December, 2022. The REC life has been increased to perpetuity with no floor and forbearance price. The market has also become fungible with single RECs market instead of Solar and Non-Solar segments.

In addition to existing Day Ahead Market (DAM) Segment at Power Exchange, an additional  Green  Day  Ahead  Market  (GDAM)  is  available  for  allowing  exclusive  trade  in Renewable Energy since October, 2021. The participants submit their bids in two parts, i.e.,  quantity and price they would be willing to buy or sell in GDAM and DAM based on their eligibility criteria. Participants have option to choose if they would like to transfer unselected quantity in GDAM to the DAM and can also price it differently. Market Clearing or Price Discovery takes place in a sequential manner i.e., first GDAM is cleared followed by DAM. The buyers can claim RPO credit based on the power purchased by the Buyer in GDAM. RE Sellers cleared in DAM may claim issuance of RECs. Total volume traded in GDAM since October 2021 to January 2023 is 4186.64 Million Units (MU).

Green Term Ahead Market (G-TAM) segment functioning since August, 2020 comprises of contracts for trade in electricity generation from renewable energy sources. There are three sub-segments within G-TAM market namely Solar, Non-Solar and Hydro. In Solar sub-segment, only electricity generated from solar energy sources is traded and in Non-Solar sub-segment, electricity generated from renewable energy sources other than Solar energy sources is traded and in Hydro sub-segment, only electricity generated from Hydro  energy  sources,  which  are  eligible  for  compliance  of  Hydro  Purchase  Obligation (HPO).  Under  this  segment  RE  can  be  traded  for  time  horizon  of  intra-day,  day  ahead contingency,  Daily,  Weekly,  Monthly  and  Any  day  single  sided  contract  which  provides flexible procurement of power up to 90 days as per the requirement of the participants. Total volume traded in GTAM since August, 2020 to January, 2023 is 8509.49 Million Units (MU).

The month-wise trading in G-DAM and G-TAM segments is at Annexure-I. The State/UT-wise break up is at Annexure-II.

Market based opportunities for sale and purchase of RE would help in faster expansion  of  new  RE  capacities  as  it  builds  up  investor  confidence  in  viability  of  RE projects.

*************

ANNEXURE  REFERRED  IN  REPLY  TO  PARTS  (a)  TO  (d)  OF  UNSTARRED  QUESTION  NO.  1223 ANSWERED IN THE LOK SABHA ON 09.02.2023 **************

Month-wise Trading in G-DAM segment (Inclusive of IEX, PXIL & HPX) is provided in the Table below:

| Sr. No.   | Month       |   Buy (MU) |
|-----------|-------------|------------|
| 1         | Oct-21      |      19    |
| 2         | Nov-21      |     149    |
| 3         | Dec-21      |     157    |
| 4         | Jan-22      |     198    |
| 5         | Feb-22      |     191    |
| 6         | Mar-22      |     205    |
| 7         | Apr-22      |     214.73 |
| 8         | May-22      |     493.17 |
| 9         | Jun-22      |     362.23 |
| 10        | Jul-22      |     446.58 |
| 11        | Aug-22      |     320.5  |
| 12        | Sep-22      |     324.64 |
| 13        | Oct-22      |     292.92 |
| 14        | Nov-22      |     288.27 |
| 15        | Dec-22      |     237.97 |
| 16        | Jan-23      |     285.15 |
|           | Grand Total |    4186.64 |

Month-wise Trading in G-TAM segment (Inclusive of IEX, PXIL & HPX) is provided in the Table below:

| Sr. No.   | Month   | Buy (MU)   |
|-----------|---------|------------|
| 1         | Aug-20  | 2.93       |
| 2         | Sep-20  | 82.85      |
| 3         | Oct-20  | 208.39     |
| 4         | Nov-20  | 164.28     |
| 5         | Dec-20  | 89.78      |
| 6         | Jan-21  | 92.40      |
| 7         | Feb-21  | 93.73      |
| 8         | Mar-21  | 51.46      |
| 9         | Apr-21  | 191.69     |
| 10        | May-21  | 357.74     |
| 11        | Jun-21  | 439.34     |
| 12        | Jul-21  | 741.63     |
| 13        | Aug-21  | 445.27     |
| 14        | Sep-21  | 602.53     |
| 15        | Oct-21  | 422.69     |
| 16        | Nov-21  | 422.19     |
| 17        | Dec-21  | 447.88     |
| 18        | Jan-22  | 237.65     |
| 19        | Feb-22  | 655.52     |
| 20        | Mar-22  | 497.46     |
| 21        | Apr-22  | 328.74     |
| 22        | May-22  | 535.36     |
| 23        | Jun-22  | 234.02     |
| 24        | Jul-22  | 193.43     |
| 25        | Aug-22  | 177.98     |
| 26        | Sep-22  | 154.69     |
| 27        | Oct-22  | 141.27     |
| 28        | Nov-22  | 153.23     |
| 29        | Dec-22  | 221.89     |
| 30        | Jan-23  | 121.48     |
| Grand     | Total   | 8,509.49   |

*************

ANNEXURE-II ANNEXURE  REFERRED  IN  REPLY  TO  PARTS  (a)  TO  (d)  OF  UNSTARRED  QUESTION  NO.  1223 ANSWERED IN THE LOK SABHA ON 09.02.2023

**************

Figures in Million Units (MUs)

| Sl. No.   | State/UT Name                    | GDAM    | GDAM    | GTAM    | GTAM    | Total   | Total   |
|-----------|----------------------------------|---------|---------|---------|---------|---------|---------|
| Sl. No.   | State/UT Name                    | Buy     | Sell    | Buy     | Sell    | Buy     | Sell    |
| 1         | Chandigarh                       | 0.00    | 0.00    | 0.00    | 0.00    | 0.00    | 0.00    |
| 2         | Delhi                            | 204.66  | 3.46    | 59.61   | 18.30   | 264.28  | 21.75   |
| 3         | Himachal Pradesh                 | 2.58    | 31.29   | 0.00    | 91.89   | 2.58    | 123.19  |
| 4         | Haryana                          | 79.63   | 0.01    | 65.97   | 0.00    | 145.60  | 0.01    |
| 5         | J&K                              | 0.00    | 84.97   | 0.00    | 11.91   | 0.00    | 96.88   |
| 6         | Punjab                           | 386.47  | 0.00    | 0.75    | 0.00    | 387.22  | 0.00    |
| 7         | Rajasthan                        | 25.93   | 27.56   | 2.29    | 21.81   | 28.21   | 49.36   |
| 8         | Uttarakhand                      | 2.53    | 0.00    | 5.75    | 0.00    | 8.28    | 0.00    |
| 9         | Uttar Pradesh                    | 111.53  | 22.95   | 134.17  | 0.66    | 245.70  | 23.61   |
| 10        | Andhra Pradesh                   | 4.01    | 839.60  | 7.71    | 1.63    | 11.72   | 841.23  |
| 11        | Karnataka                        | 128.69  | 539.39  | 0.00    | 731.47  | 128.69  | 1270.86 |
| 12        | Kerala                           | 55.46   | 24.21   | 0.00    | 0.20    | 55.46   | 24.41   |
| 13        | Pondicherry                      | 0.00    | 0.00    | 0.00    | 0.00    | 0.00    | 0.00    |
| 14        | Telangana                        | 8.28    | 202.99  | 0.00    | 74.70   | 8.28    | 277.68  |
| 15        | Tamil Nadu                       | 39.53   | 0.11    | 0.00    | 0.00    | 39.53   | 0.11    |
| 16        | Bihar                            | 0.00    | 0.00    | 0.00    | 0.00    | 0.00    | 0.00    |
| 17        | DVC                              | 230.35  | 0.00    | 27.62   | 10.50   | 257.97  | 10.50   |
| 18        | Jharkhand                        | 114.80  | 0.00    | 0.00    | 0.00    | 114.80  | 0.00    |
| 19        | Orissa                           | 76.23   | 0.00    | 447.27  | 0.00    | 523.50  | 0.00    |
| 20        | Sikkim                           | 0.00    | 5.01    | 0.00    | 0.90    | 0.00    | 5.92    |
| 21        | West Bengal                      | 37.12   | 0.00    | 58.32   | 0.00    | 95.44   | 0.00    |
| 22        | Chhattisgarh                     | 0.00    | 0.00    | 0.00    | 0.00    | 0.00    | 0.00    |
| 23        | Daman & Diu Dadra & Nagar Haveli | 140.80  | 0.00    | 74.91   | 0.93    | 215.71  | 0.93    |
| 24        | Goa WR                           | 0.00    | 0.00    | 0.00    | 0.00    | 0.00    | 0.00    |
| 25        | Gujarat                          | 317.40  | 0.00    | 289.49  | 27.14   | 606.89  | 27.14   |
| 26        | Madhya Pradesh                   | 87.87   | 133.15  | 0.00    | 20.51   | 87.87   | 153.66  |
| 27        | Maharashtra                      | 353.70  | 41.76   | 156.53  | 0.00    | 510.23  | 41.76   |
| 28        | Arunachal Pradesh                | 0.00    | 0.00    | 0.00    | 0.00    | 0.00    | 0.00    |
| 29        | Assam                            | 151.03  | 0.00    | 0.00    | 0.00    | 151.03  | 0.00    |
| 30        | Meghalaya                        | 5.80    | 0.00    | 0.23    | 0.00    | 6.04    | 0.00    |
| 31        | Manipur                          | 0.00    | 0.00    | 0.00    | 0.00    | 0.00    | 0.00    |
| 32        | Mizoram                          | 0.00    | 0.00    | 0.00    | 0.00    | 0.00    | 0.00    |
| 33        | Nagaland                         | 0.00    | 0.00    | 0.00    | 0.00    | 0.00    | 0.00    |
| 34        | Tripura                          | 0.00    | 0.00    | 0.00    | 0.00    | 0.00    | 0.00    |
| Total     |                                  | 2564.40 | 1956.46 | 1330.62 | 1012.55 | 3895.02 | 2969.01 |

*Data is for the period: April 2022 to December 2022

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