Red Eléctrica de España has completed the process of allocating the interruptibility demand-side management service through competitive auctions with the allocation of a total of 21 blocks of 40 megawatts (MW) and 352 blocks of 5 MW, which translates into an interruptible power for the period from 1 January to 30 June 2019 of 2,600 MW. 124 consumers participated in this auction process.
The auctions, which took place in Madrid from 10 to 12 December, were organised by Red Eléctrica as Auction Administrator. After the auction, the final auction results, which have already been validated by the National Markets and Competition Commission (CNMC), were published by Red Eléctrica on the e-Sios website.
The average allocation price for this auction was 105,429 euros/MW per year for the 40 MW capacity products and 64,625 euros/MW per year for those of 5 MW. The weighted average allocation price was 77,807 euros/MW per year. In total, 101.15 million euros will be allocated to the Interruptibility service for large consumers of electricity for the period between 1 January and 30 June 2019.
The starting prices fixed by the Secretary of State for Energy in the Resolution of 19 April 2018, were 200,000 euros/MW and year for the 40 MW capacity product and 150,000 euros/MW and year for those of 5 MW.
The starting prices fixed by the Secretary of State for Energy in the Resolution of 6 November 2018 were 200,000 euros/MW and year for the 40 MW capacity products and 150,000 euros/MW and year for those of 5 MW.
The interruptibility service is a tool available to Red Eléctrica, as system operator, to ensure, at all times, a quality electricity supply nationwide. By way of such service, large consumers of electricity (industries) undertake and agree to reduce their electricity consumption as and when the electricity system requires them to do so; such consumers are financially compensated for the reduction. The service is activated by Red Eléctrica and responds to technical or economic criteria.
The allocation of the interruptibility service is carried out through the holding of auctions managed by Red Eléctrica and supervised by the National Markets and Competition Commission. For its part, the Ministry for Ecological Transition is the body in charge of defining the entire procedure and the rules which govern it.
The process is articulated through a system of competitive reverse auctions in which the starting price is reduced until there is only one bidder left; the process is repeated for each block of capacity product.
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