What is the energy exchange?

Iran Energy Exchange, as a commodity exchange, is a self-regulating organization that allows trading of energy carriers (including oil, gas, electricity and other energy carriers) and securities based on the aforementioned commodities. Similar to other exchanges, there are a large number of buyers and sellers in Iran’s energy exchange, who make it possible to reach the equilibrium prices of energy carriers by conducting transactions in a competitive environment.

Trading platforms of consumers in the energy exchange market:

The electricity sector of the Iran Energy Exchange market consists of two markets: wholesale electricity and large consumers. In the electricity wholesale market, there are electricity distribution companies and retail companies, and the large consumers market are the final consumers of electricity. Consumers can buy electricity in both physical and direct form from electricity suppliers (retailer, power plant).

Advantages of buying electricity from the energy exchange:

• A reliable platform for buying electricity without concluding a contract between the buyer and the supplier
• The possibility of buying electricity at a reasonable price in the cold seasons of the year
• A transparent electricity purchase platform for suppliers and buyers whose transactions are conducted under inspection and trading commission.
• The possibility of buying electricity in separate periods of intermediate load, low load and peak load

Disadvantages of buying electricity from the energy exchange:

• High risk of electricity purchase due to possible lack of agreement on the trading board between buyer and seller
• The possibility of not using the purchased electricity due to the purchase before the start of the course
• Purchase of electricity purchased before consumption