Page 9 - Electricity Market Annual Report 2019-2020

8 Electricity Market Annual Report 2019-2020

IREMA

IREMA, which stands for Iran Electricity Market, is a community of all stakeholders,
participants, potential players, companies, organizations, supervising entities, state/pri-
vate owned holdings, that are/will be taking/take a role in electricity market functions.
Participants can trade electricity through the spot market, energy exchange and bilateral
contracts. In the light of this introduction IREMA is a general term, covering all activities
related to the power system restructuring and electricity market. IGMC, which stands for
Iran Grid Management Company, takes the role of market/system operator in IREMA.
IGMC executes the day ahead wholesale electricity auction (namely referred to as the spot
market in this report), performs the market operation (Billing and scheduling), and relates
the other trading environments to the flow calculations. It is clear that all the consumed
electricity is not traded via IGMC, and in case of energy exchange and bilateral contracts
IGMC is just informed about the traded volume of the power to take these trades into ac-
count in the calculations and modeling. Currently, retailers and large industrial end users
that their demand exceeds 5MW, are enable to purchase their required power bilaterally or
from energy exchange. For more information please refer to IREMA website.1

Table 2: Methods of Electricity Trading in IREMA Tariff based from
Methods of Electricity Trade REC/ EDC

Spot Market Energy Exchange Bilateral Contracts *

REC2 * *
* *
EDC3 *
*
Large Industrial End *
User

Retailer

1. www.irema.ir
2. Regional Electricity Company
3. Electricity Distribution Company