Page 12 - Annual Report 2023

periodically by the regulator. This is notable that the mandatory regulations
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prohibit capacity withholding. IREMA drives a single side auction, so the
purchase curve only shows the total demand per hour. IGMC is responsible to
find the cheapest least-cost solution for meeting the hourly energy demand in the
next day. Generally, the sellers are paid for their energy production by
considering their offered prices, and on the other hand the buyers are charged by 8 Power Market Annual Report 1401
the energy average price at each hour. Power Market Annual Report 1401 13
the output from all generators is aggregated and instantaneously scheduled to
Exchange between sellers and buyers is facilitated through a spot market where the output from all
meet demand. AlsoIn additional, operation of the transmission grid and power
generators is aggregated and instantaneously scheduled to meet demand. In additional, operation of
plants are coordinated through a centrally dispatch process.
the transmission grid and power plants are coordinated through a central dispatch process.

Figure 4: Spot Market Process

Security Constraint Unit Commitment (SCUC)

Maintenance Price Offer Energy Trades in Fuel Technical
Programs and for Energy PEX and Bi-lateral Forecast Specification
Limitations Generation Contracts on
Generators

Figure 5: SCUC Process

Figure 3: Schematic of RECs in Iran Electricity Network and Percentage of Generation and
Consumption in Summer of Fiscal Year
Payments to Sellers Orders in Spot Marke
Orders in Spot Market t
Capacity Payment Up to 10 AM, sellers are required to submit their available capacity as well as their energy price
Up to 10 A.M., sellers are required to submit their available capacity as well as
1
The minister of energy determines the price cap annually. Maximum price from 2022-03-21 to 2022-09-14 is
642,000 Rials/MWh and from 2022-09-15 to 2023-03-20 is 803,000 Rials/MWh. It is notable that fuel tariff for
their energy price curve for each hour of the next day. Energy price curves need
• To all the units ready to produce Energy � curve for each hour of the next day. Energy price curves need to be defined with at most 10 (volume,
electricity generation is highly subsidized. The price of fuel for power plants is 250 Rials/m in fiscal year.
to be defined with at most 1010 (volume, price) steps. The minimum price is 0
• Based on available capacity, not used capacity price) steps. The minimum price is 0 Rial/MWh and the maximum price is defined periodically Commented [IR1]:
642,000 and 803,000 Rials/MWhdefined

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• Motivational factor for being available during peak hours (Capacity Payment Factor (CPF)) by the regulator . This is notable that the mandatory regulations prohibit capacity withholding. Commented [IR2]: ﺕﺳﺍ ﻩﺩﺷ ﻪﻠﭘ 20 ﻥﻻﺍ ﻡﻧﮐ ﺭﮑﻓ
1
In order to attract and retain adequate resources for the reliable operation of the energy market, IREMA drives a single side auction, so the purchase curve only shows the total demand per hour.
revenues from energy, ancillary services and capacity must be adequate to cover the overall cost IGMC is responsible to find the least cost solution for meeting the hourly energy demand in the
of power plants. The capacity payment plays vital role of assuring the revenue sufficiency of the next day. Generally, the sellers are paid for their energy production considering their offered prices,

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suppliers as well as reducing the magnitude of inappropriate price volatility. and on the other hand the buyers are charged by the energy average price at each hour.
1. The minister of energy determines the price cap annually. Maximum price from 2022-03-21 to 2022-09-14 is 642,000
Rials/MWh and from 2022-09-15 to 2023-03-20 is 803,000 Rials/MWh. It is notable that fuel tariff for electricity gener-
ation is highly subsidized. The price of fuel for power plants is 250 Rials/m in the fiscal year.
3