OMIP, the Iberian Energy Derivatives Exchange; OMIClear, the Compensation Chamber for the Iberian Peninsula; and Endesa have today presented the first auction in Madrid for purchasing solar energy on the Iberian market, which will be held during the last week of September.
The auction, organised by OMIP, is aimed at solar energy producers, so they can sell their energy through forward contracts (directly or via their representatives) if they so wish. Until now, the wholesale forward market has not offered the financial risk management tools required to meet the specific profile of solar production.
Legislation defines the specific remuneration for solar energy producers, in which the market income has a direct impact on the promoter’s profitability. The auction being presented today offers producers a stable market price, in a transparent, reliable and competitive environment to help reduce the volatility of their revenue.
Endesa, a company belonging to the Enel group and the leading company in the Spanish electricity sector and the second operator in the Portuguese electricity market, will be the end and sole purchaser of the energy, through forward contracts based on a representative index of Spain's solar output, up to a maximum of 500 GWh.
The contracts will be designed by OMIP and OMIClear and included in the MIBEL Derivative Market Portfolio, with OMIClear assuming the role of central counterparty responsible for the entire risk management and payments.
OMIP’s executive director, Jorge Simão, highlighted the interest in this innovative initiative in the Iberian market given that "it is the first step towards launching products designed specifically for the production of renewable energy and we expect to have products designed specifically for wind power in the medium term".
Legislation defines the specific remuneration for solar energy producers, in which the market income has a direct impact on the promoter’s profitability. Javier Alonso Pérez, Endesa’s Front Office Director, has assured that “the auction being presented today offers producers a stable market price, in a transparent, reliable and competitive environment to help to reduce the volatility of their revenue”.
For more information about the auction, the producers or their representatives, please visit http://www.omip.pt/Subastas/SubastasSolares/tabid/344/language/en-GB/Default.aspx or send an email to email@example.com or firstname.lastname@example.org