Power Minister launches real time market in electricity
The Real-time Market (RMT) will enable the consumers, including captive users and distribution companies (discoms) to buy power on exchanges just an hour before the delivery.
The Union Power Minister, R K Singh formally launched the pan-India real-time market in electricity on June 3, 2020. This will allow consumers to buy power just one hour before the delivery.
The Real-time Market (RMT) will enable the consumers, including captive users and distribution companies (discoms) to buy power on exchanges just an hour before the delivery. The launch of pan-India Real-Time Market in electricity took place through video conference.
The Union Power Minister informed that this step has placed the Indian Electricity market amongst a league of few electricity markets in the world that have a real-time market.
What is the Real-time market?
RK Singh during the launch mentioned that the real-time market is an organized market platform that will enable the buyers and sellers to meet their energy requirements closer to real-time of operations.
He further added that the introduction of the real-time market will bring the required flexibility to the market to provide real-time balance while ensuring optimal utilization of the available surplus capacity in the system.
• The Real-time market went live at Power Exchange India Limited (PXIL) and Indian Energy Exchange (IEX) at 10.45 pm on May 31, 2020, for the delivery at 12.00 am on June 1, 2020.
• The real-time market will be able to make the power market dynamics as the auctions will be conducted every 30 minutes. There will be 48 sessions of auctions in a day.
• The proposed real-time market will provide an alternative mechanism for Discoms to access the larger markets at competitive prices.
• National Load Despatch Centre- POSOCO has been facilitating necessary automation in coordination with the power exchanges to ensure that there are faster transactions and settlements in the real-time framework.
• It will also lead to better portfolio management by the utilities with efficient power procurement scheduling, planning, imbalance handling, and despatch.
Government’s target of renewable energy:
The Indian government’s target of 175 GW Renewable Energy capacity by 2022 has been driving accelerated renewable penetration pan-India.
As per the power ministry’s statement, the real-time market will help to mitigate challenges to the grid management due to the variable nature of renewable energy generation and therefore, it will help to integrate a higher quantum of renewable energy sources into the grid.