Real-time power market (RPM): From June 1, buy power on exchanges just an hour before delivery

Seemingly unimpacted by COVID-19, Real-time power market is expected to start from June 1, an official of the Indian Energy Exchange (IEX) said. According to Rohit Bajaj, Head Business Development, "So real-time market we expect to start from June 1...We have been regularly in touch with all these distribution companies and most of them are fully prepared, they are geared up for participation in real-time market and we do not see any impact on account of COVID-19 as of now."

Real-time power market (RPM)

- The real-time power market (RPM) enables consumers, including distribution companies (discoms) and captive users, to buy power on exchanges just an hour before delivery.

- Currently, consumers, including discoms and captive users, can buy power a day prior in the Day Ahead Market (DAM) on the power exchanges where trading is done for two hours daily from 10 am to 12 noon.

Purpose of RPM

-The main purpose of introducing real-time power market is to deal with renewables interference and better portfolio management by power general companies (gencos), discoms and other consumers.

-With more and more renewable energy capacity being added to power grids, there would be need for sudden ramp-up and downsizing of supply.

-Consumers can plan their energy supplies in a better way and gencos would be able to increase or decrease their output accordingly.

New system: How it works

- Under the new system, there will be 48 sessions of 30 minutes each in a day. It means that trading of electricity would be done round the clock.

-After closing of the session, power delivery can be scheduled at an interval of one hour.

-Thus, if a consumer buys power in the 1:30 pm-2 pm session, the electricity supply can be scheduled as early as 3 pm on the same day.

Earlier in March, power regulator CERC had decided to defer the implementation of real-time power market till June 1 amid the coronavirus outbreak. Initially, the real-time market was scheduled to start from April 1 this year. The government had imposed lockdown on March 25, which has been extended thrice, albeit with relaxations.