Energy trading platform Indian Energy Exchange on Monday launched the real-time electricity market (RTM) on its platform, a move that will help utilities buy and sell power just an hour before the requirement.

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

The real time market is an endeavour by the regulator, CERC, to make the power market dynamic by enabling trade in electricity through half-hourly auctions, Indian Energy Exchange (IEX) said in a regulatory filing.

There will be 48 auction sessions during the day with delivery of power within one hour of closure of the bid session, the filing added.

"With the launch of RTM, the Indian energy markets are moving towards global standards of electricity trading and establishing the new energy order in the country. It will support the utilities in reducing dependence on grid deviation framework, of the order of 20 BU in fiscal year 2020," IEX Ltd CEO and Managing Director Rajiv Srivastava said.

Srivastava further said that the primary purpose of the real-time market is to allow utilities to manage their power demand dynamically, save on huge deviation related penalties and integrate renewables in an effective way.

"The new market segment will foster greater flexibility, competition and efficiency in electricity sector and address the emerging needs of the time," he added.

With the fast-paced shift towards renewable energy, the real-time electricity market will facilitate the distribution utilities to manage the challenge of intermittency associated with renewables, the filing said. PTI SID SID