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The Central Electricity Regulatory Commission (CERC) has issued a public notice regarding a significant proposal from the Indian Energy Exchange (IEX). This proposal aims to introduce a new segment called the Green Real-Time Market (G-RTM) on the IEX platform. The G-RTM is designed to facilitate exclusive real-time trading of renewable energy. This step is aligned with India’s increasing focus on sustainable energy practices and the growing share of renewable sources like wind and solar in the national energy mix. Stakeholders and the public have been invited to send their comments and suggestions by 23rd April 2025, indicating the regulator’s commitment to transparency and inclusiveness. The proposed G-RTM has received strong support from various players in the renewable energy sector. Leading industry representatives, including those from Greenko Group, General Carbon, Hygenco Green Energies, Fourth Partner Energy, and ReNew, have all emphasized the urgent need for this new market segment. These organizations have highlighted several reasons why the G-RTM would be a crucial addition to India’s power trading infrastructure. Firstly, the G-RTM would allow for better management of the fluctuations inherent in renewable energy generation. Solar and wind power, while clean, are variable by nature and dependent on factors like sunlight and wind speed. Real-time trading would give power producers the flexibility to adjust supply based on actual generation levels. Similarly, grid operators and buyers would gain the ability to purchase power on short notice, helping to balance supply and demand more efficiently. Secondly, the G-RTM is expected to provide an alternative to Renewable Energy Certificates (RECs), which are currently a common way for obligated entities to meet Renewable Purchase Obligations (RPOs). However, the price of RECs has been falling, making them a less attractive option. With G-RTM, renewable power generators can sell green electricity directly, and obligated entities can fulfill their RPOs in real-time, avoiding additional costs like penalty charges for delayed compliance. Thirdly, the G-RTM is anticipated to improve price discovery in the renewable segment. Unlike the broader real-time market which includes all types of electricity, this dedicated platform would focus solely on green power. This distinction will create more accurate pricing signals based on real-time supply and demand conditions specific to renewable energy, which will help encourage efficient use and investment in green power technologies. Additionally, this market innovation supports decentralized energy systems by enabling distributed energy resources like rooftop solar and battery storage systems to participate in real-time trading. This development is especially important as the Indian energy ecosystem increasingly shifts toward decentralized, consumer-centric models. Further, the G-RTM is expected to boost grid stability. By enabling operators to buy and sell renewable energy instantly, it reduces the chances of grid imbalances caused by forecast errors or unexpected shifts in power consumption or generation. This will lead to smoother operations and lower costs for everyone involved. Lastly, the creation of a G-RTM aligns with the national goal of reducing greenhouse gas emissions and promoting a low-carbon future. With cleaner, more efficient market mechanisms, India will be better positioned to integrate higher levels of renewable energy into the grid and meet its climate targets. The proposed Green Real-Time Market by IEX represents a forward-looking initiative that is well-supported by major renewable energy stakeholders. It offers practical solutions for enhancing flexibility, transparency, and reliability in green power trading while advancing India’s clean energy transition. The regulatory process is ongoing, and its successful implementation could mark a major milestone in India’s renewable energy journey. |
