Power and New and Renewable Energy Minister, R K Singh launched pan-India real-time market in electricity through video conference in New Delhi on Wednesday, June 3.
The launch has made the Indian electricity market amongst a league of few electricity markets in the world, which have real-time market.
“Introduction of real-time market will bring required flexibility in the market to provide real-time balance while ensuring optimal utilization of the available surplus capacity in the system. It will also help manage diversity in the demand pattern in the country with an organized market at the national level,” a power ministry statement said.
Real-time market is an organized market platform to enable the buyers and sellers pan-India to meet their energy requirement closer to real-time of operation.
As per reports, the real-time market went live at Indian Energy Exchange (IEX) and Power Exchange India Limited (PXIL) at 22:45 on May 31, 2020 for delivery at midnight on June 1, 2020.
In the real-time market, the auction will be conducted every 30 minutes making it very dynamic.
The concept of ‘Gate Closure’ has been introduced for bringing in the desired firmness in schedules during the hours of market operation. Buyers/sellers shall have the option of placing buy/sell bids for each 15-minute time block. The proposed real-time market would provide an alternate mechanism for Discoms to access larger markets at a competitive, power ministry added.
Additionally, generators would also benefit by participating in the real-time market with their un-requisitioned capacity. A mechanism has been provided for generators having a long-term contract and participating in this market to share the net gains with the Discoms. National Load Despatch Centre-POSOCO is facilitating necessary automation in coordination with power exchanges to ensure faster transactions and settlements in the real time market framework.
India has the target of meeting 175 GE RE capacity by 2022 and the real-time market is projected to help mitigate challenges to the grid management due to intermittent and variable nature of renewable energy generation and therefore, help to integrate higher quantum of renewable energy resources into the grid.
The real-time market is expected to lead better portfolio management by the utilities with efficient power procurement planning, scheduling, despatch, and imbalance handling.
The real-time market, therefore, is considered a win-win for all stakeholders wherein generators have the opportunity to sale their surpluses, better manage the variability of RE generation, better utilization of transmission systems, Discoms have an opportunity to buy or sell power and, finally, consumers are ensured of reliable power supply.