Hydropower Plants to Enter Energy Bourse

Hydropower Plants to Enter Energy BourseHydropower Plants to Enter Energy Bourse

Plans are underway for hydroelectric plants to be offered in the energy bourse, electricity market office of Iran's Electricity Network Management Company announced Wednesday, ISNA reported.

Hydroelectric plants are not being offered in the bourse at the moment, but plans are being devised to this end as companies have demanded entry into the energy bourse, Reza Riahi said.

A total of 39 distribution companies and 20 power plants belonging to private sector are currently active in the energy bourse. Since the energy bourse went into operation in March 9, 2013 until February 28, 2015, transactions carried out at the energy bourse amounted to 3.7 trillion rials ($109.7 million).

Electricity transactions started in the energy bourse in the form of forward contracts, ten years after the country's electricity market was established in 2003 by Iran Grid Management Co. (IGMC). The contracts are divided into 20 types based on consumption period and the time of delivery.

Power plants are now able to offer electricity in the energy bourse via their exclusive transaction codes. Additionally, distribution companies, as buyers, will only be permitted to purchase forward contracts, according to Riahi.

Hydroelectricity accounts for 15 percent of the total power station capacity in the country. In the first half of the current year (March 21-September 22, 2014) 9.8 billion kilowatt hours of energy was produced through hydroelectric power stations. The country’s hydroelectric power generation rose by 7 percent compared to the first half of the previous year.