Electricity offerings at IRENEX doubled in a month

October 16, 2019 - 17:21

TEHRAN – The capacity of electricity offerings at Iran’s Energy Exchange (IRENEX) has doubled in the Iranian calendar month of Shahrivar (August 23-Septemebr 22) compared to its previous month, IRIB reported on Wednesday, quoting an official with Iran’s Power Generation and Distribution Company (known as TAVANIR).

According to Tavanir's Deputy Managing Director for National Grid Dispatching Mostafa Rajabi Mashhadi, offerings of electricity in the stock exchange increased by 300 million kilowatt hours (kWh) in Shahrivar to reach 500 million kWh.

“In the mentioned time span the amount of bilateral contracts for electricity purchase has also doubled,” he said adding that in this type of contracts, private power plants can sign long-term contracts with consumers and receive their payments in cash.

Electricity traded based on the bilateral contracts have increased to 547 megawatts (MW) in the mentioned period, up 419 MW compared to the preceding month.
“In this electricity purchase model, business owners can supply 25-30 percent of their electricity with a cheaper price,” he said.

According to the official, in such contract model, industrial units with electricity consumption of above five megawatts will be able to buy electricity directly from power plants.

Earlier this month, Head of Iran Energy Exchange Ali Hosseini said utility companies that offer electricity on the energy bourse will be eligible for 10 percent tax exemption.

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