According to RK Singh, the Centre is working to implement the Green Hydrogen Mission
The Union government on Monday established the Green Day Ahead Market (GDAM), a new market sector that will allow electricity producing and distribution businesses to buy and sell renewable energy through open access, according to a statement from the ministry of power and renewable energy. While introducing the portal, Union Minister of Power and Renewable Energy RK Singh stated that India is the only significant electrical market in the world to deploy a GDAM solely for renewable energy.
“Even in the power sector, buyer behaviour is trending away from long-term contracts and toward short-term contracts. This new endeavour will contribute to the energy transition’s success. It will generate competitive pricing signals and give market players the ability to trade green energy in the most transparent, flexible, and efficient way possible. “The distribution utilities would be able to sell surplus renewable energy generated in their territory at GDAM,” Singh added.
The accomplishment is significant since India has set a goal of having 450 GW of 100% renewable energy capacity by 2030. India now has 147 GW of installed renewable energy capacity, including hydropower, and another 63 GW is currently being installed through various projects. The move is also intended to lessen the country’s reliance on imported fossil fuels. Singh stated that GDAM will assist cut the cost of power at a time when the country is experiencing a coal scarcity, which is putting a strain on the generation capacity of thermal power plants. “We witnessed a spike in spot electricity purchases in the last several weeks as demand for electricity from thermal power units increased. The average daily cost of electricity is currently around $4 per unit, which will drop much more with GDAM,” claimed the Union minister.
The government hopes to progressively transition away from long-term power purchase agreements (PPAs) and toward market-based approaches. In the country’s electrical sector, PPAs are often signed for up to 25 years.