TEHRAN – Iranian private power suppliers are due to offer 110,000 kilowatt hours (KWh) of electricity at the country’s Energy Exchange (known as IRENEX) on Saturday, IRNA reported.

MAPNA group’s Parand Power Plant Company and Saba Power and Energy Group are the two major providers of the mentioned offerings.

Offerings of electricity in the stock exchange have been following an upward trend so that in October 2019, the offering of the electricity nearly doubled and reached 500 million kilowatt-hours (kWh).

The government has also been providing incentives for private power companies to encourage them to offer their generated electricity at the energy exchange.

Earlier this month, IRENEX’s Managing Director, Seyed Ali Hosseini, said offering electricity at the energy exchange would centralize the country’s electricity trades and consequently balance the prices.

According to Hosseini, balancing the electricity prices at IRENEX can result in providing electricity to industrial buyers at a lower price and would optimize electricity consumption.

“When such trades are concentrated in the energy exchange and economically motivated buyers and sellers start operating in a transparent environment, we will achieve a balanced price. This may be lower for some consumers than the current price,” the official told IRNA.

Hosseini further stated that currently, there is no coherent market for trading electricity, underlining that electricity is being offered at IRENEX on a regular basis.

In October 2019, Hosseini had announced that utility companies that offer electricity at the energy bourse will be eligible for a 10 percent tax exemption.

“This will ensure mutual benefit for both sides as power producers get a 10 percent tax break and buyers get electricity cheaper from IRENEX”, he said.

EF/MA