The Portuguese Securities Market Commission (CMVM), the Portuguese Financial Regulator, has given the go-ahead for the first Iberian solar energy auction to be held on 29 September.
The auction, promoted by Endesa and coordinated by the independent manager of the Iberian Energy Derivatives Exchange, OMIP, is aimed at solar producers to enable them to forward sell their energy, either directly or through their representatives. Until now, the wholesale forward market has not offered the financial risk management tools required to meet the specific profile of solar production.
The main advantages of the auction include offering producers a stable market price, in a transparent, reliable and competitive environment to help reduce the volatility of their revenue. It also enables the creation of a specific index for solar products (SPEL Solar), the first in Europe which will also serve as a reference to analyse the progress and behaviour of this technology in the financial markets.
Solar energy producers will have until the 25th of September to register, which is the date on which the qualification period ends. The volume of contracts will be known one week before the auction is held and the starting price will be published the day before, the 28th of September.
Endesa, a company belonging to the Enel Group, will be the final and sole purchaser of the energy, via forward financial contracts based on the representative index published by OMIP, up to a maximum of 500 GWh.
The contracts designed by OMIP and OMIClear will be included in the MIBEL Derivative Market Portfolio of products, with OMIClear assuming the role of central counterparty responsible for the entire risk management and payments.
This is a new mechanism on the financial market at an international level, it is a product designed specifically for renewable energy, in this case photovoltaic energy, applicable also to solar thermal energy.
For more information:
OMIP: +351 210 006 000