Iran Electricity Market (IREMA) has been established since 2003, prior to any other countries in the region. It mainly aims to form a competitive atmosphere in electricity trade which by itself maturely plays a significant role as a cornerstone in Iran electricity industry. Axiomatically, electricity market is a dynamic environment which essentially needs well-sculptured infrastructures, innovative mechanism, modern software, competent staff, and creative management. As a person who spent most of his professional life in Iran electricity industry, I can retrace the first steps we took to form IREMA. Unbundling the generation, transmission and distribution sectors, clarified official relationships and financial transactions, indigenous electricity market design, although leave much to be desired, have all been lunched in Iran. Technically, qualitatively, and quantitatively I acknowledge that Iranian qualified experts in all aspects are the custodians of Iran electricity market revolution. After more than 17 years of progress, accomplishment, and fruitful achievements in power system restructuring, electricity market design, and implementation, we strongly announce our firm and decisive preparation and readiness for cooperating with and consulting other countries to make a leap forward on forming the electricity market. Transparently, at the first glance, restructuring process seems to be faced with unbreachable barriers; although applying our knowledge could definitely expedite the progress accordingly. As the Chairman of the Board and Managing Director of IGMC, comprehensively I support the Iranian electricity market experts to cast the light of knowledge and technical experiences to whom that desire. Meanwhile, it could be better to note that, economic cooperation organization (ECO) countries are going to fall into a cultivated economic relationship by establishing a regional electricity market whereas the integrated collated countries could take their own benefits and advantages respectively. Hence, one of our significant topnotch priorities is to diligently enrich, enhance, and correlate the countries' ties, specifically those in neighborhood. In this way, we are willing to cooperate with our neighboring countries and share our experiences, because accompanying, friendship, and knowledge exchange are deep-rooted in the Iranian believes and culture.
Following the restructuring of Iran's Electricity Industry and in compliance with Note 12 of Article (G) of the Budget Law of 2004, Iran Grid Management Company (IGMC) was established and became active in the second half of 2005.
Article (G), note 12:
"In 2004, Iran Power Transmission, Generation and Distribution Company (TAVANIR) is authorized to purchase all shares of one of its subsidiaries through its own financial resources, and transfer the entire tasks of national grid management, electricity transactions & transit, and establishing the electricity market to this company."
The company's statute, proposed by the Ministry of Energy, confirmed by the state Management and Planning Organization (MPO), approved by the Council of Ministers, and reconfirmed by the Guardian Council, eventually was served to the Ministry of Energy by the Cabinet.
- Reliability management, optimum utilization of generation and transmission resources in such a way to ensure safety, security and reliability of power system operation and continuous and dependable service and supply of power and energy at economically acceptable cost, for all consumers anywhere in the network.
- Providing open access to the electricity network for all applicants of state run or private sectors with the aim of transacting or/and transmitting electricity
- Making provisions for fair competition and competitive transactions by establishing, operating, and developing electricity market and power exchange
- Adopting effective policies and operating necessary measures in order to ensure power supply, expanding the participation of private sectors, by developing competitive environment in power generation and distribution within the framework of the policies set by the Ministry of Energy
- Expanding, outfitting, and managing the National Dispatching Center and presiding over local area operating centers
Note: For attaining a sustainable and secure grid, all the beneficiaries and owners of Generation and Transmission facilities which are connected to the National grid are obliged to follow up and timely execute the decisions made by the national and area operating centers and provide required information and statistics in time.
- Determining and notifying the settings related to electric power generation and transmission facilities and the required plans to ensure stability and security of the country's electricity network
- Supervising on proper implementation of regulations, standards, and guidelines relating to the company's fields of activity, and control over owners and operators of electricity generation and transmission facilities to observe the related settings and plans
Note: the company as the agent of the Ministry of Energy is authorized to inspect all or part of generation and transmission facilities of its affiliated companies at any time it deems necessary. The mentioned companies are obliged to observe and execute guidelines of the company as stipulated in the paragraph 2.
- Conduction, execution of operation, and electricity market and exchange development
- Bulk transaction of electricity inside and outside the country as well as monitoring such activities and other activities conducted by legal or real entities under the framework of rules and regulations of the electricity market
- Managing access and transit of electric energy in the grid, including electricity exchange inside and outside the country, as well as taking necessary measures to prevent situations which limit competition in the electricity market
- Establishing required infrastructure for the electricity generated by non-governmental power plants and suppliers to flow through the national grid
- Taking required measures for access to the national grid under the framework of approved regulations and based upon fair competition among governmental or non- governmental applicants authorized by the Ministry of Energy to transact and transit electricity, either suppliers (regardless of being a generator or based on the regulations can supply electricity to the grid) or consumers ( regardless of receiving electricity for their own consumption or under the regulations have the intention to supply it to others)
- Coordinating and managing data transmission systems in the power grid of the country
- Developing and publishing periodical reports regarding stability and security status of electricity generation and transmission network, and the conditions of competition in the electricity market, and also providing proposals about requirements of the national grid to the generation and transmission and other facilities (including protection and communication systems, optimal provision of spinning reserve, frequency control facilities and reactive power compensation) in order to obtain stability and security of the network and prevent the condition which limits the accessibility or competition in the electricity market and presenting of such reports to the regional electricity companies, Tavanir Co. , and Ministry of Energy
- Developing the regulations, standards and instructions related to the objectives and subject of activity of the company including permanent operation instructions and presenting them to Ministry of Energy for approval
- Supporting research, technology development, educational activities, and training the required experts in the company's fields of activity, and cooperation and synergy with other institutes in this regard
- Carrying out any operation and transaction which is necessary for the company's objectives and in line with the company's subject of activity
- Performing all duties which Tavanir Co. or Ministry of Energy assigns to the company according to the National Power Authority law which was enacted in 1976 as well as other related laws and regulations