Electricity Market Agents and Power Conversion
Special Production System
The release phasing in the generation market has combined with the maintenance of policies aimed at promoting various technologies related to auto production, renewable energy, waste, etc. In this sense, we need to rationalize the ordering of certain products that do not meet economic criteria alone, but from the standpoint of environmental or development of new technologies can have future benefits to society as a whole. For this, they recognize the right to collect premiums above the market price resulting from the production. These facilities are considered under the Special Regime.
Special regime producers can be classified into four main groups:
Type 1
Auto plants that use cogeneration or other forms of thermal electricity production associated with non-electricity activities, always involving high energy performance.
Type 2
Facilities used as primary energy for non-consumable renewable energies, biomass, or biofuel.
Type 3
Facilities used as a primary energy source of waste not covered above.
Type 4
Treatment facilities and reduction of waste from agriculture, livestock, and services, with an installed capacity exceeding 25 MW. These facilities must meet the conditions for energy efficiency.
Price received under a special scheme per kWh = kWh price in the competitive market (pool) + Bonus Scheme + Special Supplement reactive power, adding or subtracting depending on the power factor being less than or greater than 0.9.
Of the factors that shape the price of energy production in the Special Scheme, you can see that the difference is given by the Special Regime premium.
The value of the premium depends on the primary energy source and the size and type of the plant. These premiums are set by the state and tend to vary annually.
Two contradictory considerations arise:
The Special Regime production represents a decrease in primary energy consumed by the sector and reduced losses in the distribution network. Moreover, the amount of premiums does cause the average price to rise, which causes an increase in the rate. The balance will appear after saving match experience society or above the higher cost that is transmitted by the electricity tariff.
Rate
Term Power:
Fixed cost in terms of power (kW) that the consumer has contracted. Price TP = kW x kW.
Energy Term:
Cost varies according to power (kW) consumed.
TE = kWh x kWh price.
The TP and TE prices are set by Government decree.
Add
Obligatorily applied by the distribution companies.
Power Conversion and Distribution
Electricity Market Agents
Generators:
Have the function of producing electricity as well as building, operating, and maintaining generation plants. Operating in competition since the establishment of the liberalized electricity market.
Special Regime Producers:
Producers who have special economic treatment to improve energy efficiency and reduce environmental impact due to the use of renewable energy sources, waste, and cogeneration.
Autoproducer:
Natural or legal person that generates electricity primarily for own use. It consumed 30% (<25 MW) or 50% (> 25MW).
Carriers:
Carry electricity from the centers of production to the distribution network and also build, maintain, and maneuver the facilities of the transport network.
Distributors:
Have the task of locating the point of energy consumption and proceeding to sale, and to build, maintain and operate the facilities of the distribution network.
Marketers:
Legal persons with access to transmission or distribution, are in charge of selling electricity to consumers.
Consumers:
- Qualified: When the annual consumption level supply point is greater than an amount set by law. Since January 1, 2003, all consumers are eligible for the eligibility system. Bilateral contract.
- A fee.
Regulators:
- Central Government (Ministry) who exercises the powers of electrical planning, regulates the organization and operation of the production market, provides the basic rules of generation, transmission, distribution, and marketing of electric power, and determines the minimum quality requirements for safety and power.
- National Energy Commission which ensures effective competition in the electricity sector and for its objectivity and transparency.
Operators:
- Operator System (OS) is responsible for the technical operation of the system and aims to ensure the continuity and security of electricity supply and proper coordination of production and transportation system. The law assigns this role to the Spanish Electrical Network.
- Market Operator (MO) is responsible for economic management: managing the bidding system for buying and selling energy that actors engaged in the production market and makes the final result. The law assigns this role to the airline operating the Spanish Electricity Market.
The Transportation Network
Allows communication with the distribution generation or end customers and helps to minimize overall system costs. It is the key to the functioning of the market. The main function of the transportation network is, therefore, to ensure maximum availability of its facilities.
The importance of transmission is for the proper functioning of the electrical system and makes clear the need to manage using uniform criteria that are public, objective, and transparent. To this end, the law gives Spanish Red Electrica (REE) management of the transport network.
The transport network is thus open to the use of any generator to deliver energy, and any buyer (dealer, trader, or eligible customer) to take it, besides the existence of adequate capacity to the network connection associated with compliance with the technical conditions for connection and for paying tolls. The remuneration of the generation (except corresponding to bilateral contracts) is determined from transactions in the electricity market. The agents submit their bids for the sale and purchase of energy for each generating unit and for each of the 24 hours of each calendar day. From the appeal of offers made by the OM determines the marginal price of each hour, which is the base pay for all units by that time married, adding the costs of ancillary services. Generating agents are required to submit bids for all units of installed production capacity exceeding 50 MW. For the rest of the production units, this option is voluntary.