Real-Time Power Trade
The Union Power Minister RK Singh formally launched Pan India real-time market in the electricity and it went live at Indian energy exchange (IEX) and Power Exchange India Limited (PXIL) at 10:45 p.m on May 31' 2020 for delivery at 12:00 a.m. on June 1, 2020.
Having placed the Indian electricity market among the league of few electricity markets in the world, which have a real-time market, the Minister announced.
The real-time market is an organized market platform to enable the buyers and sellers Pan India to meet their energy requirements closer to the real-time of operation. By introducing the real-time market, will bring the required flexibility in the market to provide real-time balance to ensure the optimal utilization of the available surplus capacity in the system.
It also helps to manage the diversity in the demand pattern in the country with the unorganized market, which is the level of the nation.
The real-time market makes a power market dynamic as auctions which will be conducted every 30 minutes and there will be 48 auction sessions during the day. So, the concept of 'gate closer' has been introduced for bringing in the desired form and was in schedules during the hours of the market operation. The proposed real-time market would also provide an alternative mechanism for this as it comes to an excess of the larger market at competitive prices.
The buyers and sellers shall have the option of placing buy/sell bids for each 15-minute time block. It is expected that shorter bidding time, fastest scheduling, and defined processes are expected to enable the participants to access resources throughout all India grid, promoting the competition.
It also leads to better Portfolio Management by the utilities with efficient power requirement planning, scheduling dispatch, and imbalance handling.
The cost of optimization of power purchase and serving the consumers with reliable supply as any last-minute requirement of power can easily be brought from the real-time market. Generators would also benefit by participating in the real-time market with their unrequisitioned capacity. The mechanism has been provided for generators having long term contracts and participating in this market to share the net gains with the DISCOM's.
National load dispatch Centre POSOCO is facilitating the necessary automation with the coordination of power exchange to ensure faster transactions and settlements in the real-time market framework.
The government target of 175 GW renewable energy capacity of 2022 is driving the accelerated renewable penetration of Pan India. The real-time market will also help to mitigate the challenges to the grid management due to the intermittent and variable nature of renewable energy generation and therefore, it helps to integrate the higher quantum of renewable energy resources into the grid.
ABOUT THE AUTHOR
Vijayalakshmi Raju, Final year law student BA LL.B (Honours) from Dr. Ambedkar Global Law Institute Tirupati, A.P (India).
You can contact at https://www.linkedin.com/in/vijayalakshmi-raju-bb03b7170
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