Power Minister R K Singh on Wednesday formally launched pan-India real-time market in electricity, which allows consumers to buy power just one hour before delivery.

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

"Minister of State (Independent Charge) Power and New & Renewable Energy R K Singh launched pan-India Real Time Market in electricity through video conference in New Delhi, on June 3, 2020," a power ministry statement said.

The real-time market went live at Indian Energy Exchange (IEX) and Power Exchange India Limited (PXIL) at 10:45 PM on May 31, 2020 for delivery at 12:00 AM on June 01 (Sunday midnight), 2020.

The minister said the real-time market is an organized market platform to enable the buyers and sellers pan-India to meet their energy requirement closer to real-time of operation.

This has placed Indian electricity market amongst a league of few electricity markets in the world, which have real time market, he said.

The introduction of real-time market will bring required flexibility in the market to provide real-time balance while ensuring optimal utilization of the available surplus capacity in the system.

Real-time market will make the power market dynamic as auctions will be conducted every 30 minutes. There will be 48 auction sessions during the day.

The proposed real time market would provide an alternate mechanism for Discoms to access larger market at competitive price.

National Load Despatch Centre-POSOCO is facilitating necessary automation in coordination with power exchanges to ensure faster transactions and settlements in the real time market framework, the statement said.

The Government of India's target of 175 GW Renwable Enerfy Capacity by 2022 is driving accelerated renewable penetration pan-India.

The real time market would help to mitigate challenges to the grid management due to intermittent and variable nature of renewable energy generation and therefore, help to integrate higher quantum of renewable energy resources into the grid, the statement said.

It would lead to better portfolio management by the utilities with efficient power procurement planning, scheduling, despatch, and imbalance handling, it added.