NEW DELHI: India on Monday formally launched day-ahead trading of electricity from renewable sources in a move towards mainstreaming of green energy as the country eyes a record 450GW (gigawatts) of renewable energy capacity by 2030. GDAM, or green energy day-ahead market, will unlock the market potential of green energy by giving project promoters more than one outlet for their output and could ultimately free them from rigid power purchase agreements (PPAs). In that sense, GDAM is well-timed as solar tariffs, according to Crisil Ratings, are expected to rise to Rs 2.60-2.70 per unit from an all-time low of Rs 2 over the next fiscal due to increased GST on renewable energy equipment and proposed customs duty on solar modules. This could prompt utilities renege on offtake obligations under PPAs, in which case GDAM will come to the rescue of power producers. For utilities and industries, GDAM will be an alternative source of cheaper power – which would benefit consumers – and a means to redeem their renewable purchase obligation. For industries with captive renewable capacity, GDAM will additionally provide an easy, transparent outlet for surplus generation. “We are opening the doors for renewable energy. GDAM will hasten energy transition and pave the way for a resilient and future-ready power sector (in India),” power and renewable energy minister Raj Kumar Singh said after launching GDAM on the energy exchange. GDAM will keep the market in tune as the dynamics change with energy transition gathering pace as buyer preference shifts from long-term to short-term contracts and the energy exchanges. It will operate in an integrated way with the conventional day-ahead market.