Green electricity market platform for renewable power procurement
Green electricity market platforms create dedicated trading channels for buyers and sellers of renewable electricity. Instead of relying only on bilateral contracts or long-term procurement, these platforms allow renewable energy to be traded through organized power exchanges across short-term and forward time horizons. Buyers can procure green electricity to meet sustainability targets or renewable purchase obligations, while renewable generators gain an additional route to market.
These platforms improve price discovery for renewable electricity by allowing participants to submit bids based on quantity and price, and by clearing green electricity separately or alongside conventional market segments. They can also support flexible procurement across day-ahead, intraday, weekly or monthly products, helping buyers manage demand variation while enabling renewable generators to sell surplus output. When linked to renewable purchase obligations or certificate systems, green electricity market platforms can increase transparency, improve liquidity and create clearer investment signals for renewable generation.
Main Outcomes of the Solution
- Sustainability: Accelerates renewable electricity consumption by creating dedicated market channels for green power procurement.
- Affordability: Improves price discovery and procurement flexibility, helping buyers access renewable electricity through competitive market mechanisms.
- Institutional efficiency and transparency: Strengthens renewable power markets through clear trading rules, exchange-based procurement and linkage with renewable compliance mechanisms.
Key Deployment and Scaling Factors
- Dedicated green electricity trading segments within existing power exchanges.
- Clear eligibility rules defining which renewable resources and buyers can participate.
- Integration with renewable purchase obligations, renewable energy certificates or other compliance frameworks.
- Multiple contract horizons, including day-ahead, intraday, weekly and monthly products, to support buyer flexibility.
- Transparent market clearing, settlement and reporting processes to build confidence among generators, buyers and regulators.
Case study
Green Term Ahead Market and Green Day Ahead Market (2020), India
India introduced dedicated green electricity trading products to deepen the market for renewable electricity and provide competitive price signals. The Green Term Ahead Market has operated since August 2020, while the Green Day Ahead Market has been available since October 2021 as an additional market segment for renewable electricity trading. The Ministry of Power states that GTAM and GDAM enable procurement of green energy through power exchanges, which can be counted toward renewable purchase obligations.
The GDAM allows participants to submit quantity and price bids for renewable electricity, with price discovery carried out before the conventional day-ahead market. Buyers can claim renewable purchase obligation credit for power purchased through GDAM, while renewable energy sellers cleared in the conventional day-ahead market may claim renewable energy certificates. The Ministry reported that total GDAM volume from October 2021 to January 2023 reached 4,186.64 million units.
The Green Term Ahead Market provides additional flexibility by allowing renewable electricity trading across intraday, day-ahead contingency, daily, weekly, monthly and any-day single-sided contracts, with procurement available up to 90 days. The Ministry reported that GTAM volume from August 2020 to January 2023 reached 8,509.49 million units. The case shows how dedicated green power exchange products can improve renewable electricity procurement, create clearer market signals and support compliance with renewable purchase obligations.
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