The first renewable forward market mechanisms in the Iberian Electricity Market

Capitán Herráiz, Álvaro and Rodríguez Monroy, Carlos (2012). The first renewable forward market mechanisms in the Iberian Electricity Market. In: "10th Latin American and Caribbean Conference for Engineering and Technology. Megaprojects: Building Infrastructure by fostering engineering collaboration, efficient and effective integration and innovative planning", 23/07/2012 - 27/07/2012, Panama City, Panama. pp. 1-10.

Description

Title: The first renewable forward market mechanisms in the Iberian Electricity Market
Author/s:
  • Capitán Herráiz, Álvaro
  • Rodríguez Monroy, Carlos
Item Type: Presentation at Congress or Conference (Article)
Event Title: 10th Latin American and Caribbean Conference for Engineering and Technology. Megaprojects: Building Infrastructure by fostering engineering collaboration, efficient and effective integration and innovative planning
Event Dates: 23/07/2012 - 27/07/2012
Event Location: Panama City, Panama
Title of Book: 10th Latin American and Caribbean Conference for Engineering and Technology. Megaprojects: Building Infrastructure by fostering engineering collaboration, efficient and effective integration and innovative planning
Date: July 2012
Subjects:
Freetext Keywords: Energy regulation; power futures; regulated auctions; over the counter; renewable generation
Faculty: E.T.S.I. Industriales (UPM)
Department: Ingeniería de Organización, Administración de Empresas y Estadística
Creative Commons Licenses: Recognition - No derivative works - Non commercial

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Abstract

A description of the first renewable forward market mechanisms in the Iberian Electricity Market is provided. A contract for difference mechanism is available in Spain since March 2011between the last resort suppliers and the special regime (renewables and cogeneration) settling the price differences between the equilibrium price of the forward regulated auctions for the last resort supply and the spot price of the corresponding delivery period. Regulated auctions of baseload futures of the Portuguese zone in which the Portuguese last resort supplier sells the special regime production exist since December 2011. The experience gained from renewables auctions in Latin America could be used in the Iberian Electricity market, complementing these first market mechanisms. Introduction of renewable auctions at least for the most mature technologies (i.e. wind) in Spain and Portugal providing a fair price for the renewable generation will be of utmost importance in the short term to diminish the tariff deficit caused by the massive deployment of the feed-in-tariff scheme. Liquidity in the forward markets will also increase as a result of the entry of renewable generation companies intending to maximize their profits due to gradual suppression of feed in tariff schemes.

More information

Item ID: 19438
DC Identifier: http://oa.upm.es/19438/
OAI Identifier: oai:oa.upm.es:19438
Official URL: http://www.laccei.org/index.php/events/past-events/laccei-conference-2012
Deposited by: Memoria Investigacion
Deposited on: 12 Jan 2014 08:44
Last Modified: 21 Apr 2016 17:42
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