Market agent

Since 2004, GESTIÓN DE ENERGÍA Y MERCADOS is a Market Representative in the Iberian market. Thus, we present, on behalf of our clients and for each hour of each day of the year, a forecast for the sale of energy to OMIE

Introduction to the electricity market

In accordance with Royal Decree 413/2014, power plants with Specific Remuneration Regime must make hourly forecasts of their electrical surpluses. There is the possibility of sending the forecasts through the Last Resort Representative, but this entails a significant cost (currently € 5 / MWh exported, as representation in the market). Thus, it is interesting for producers with Specific Remuneration Regime that a Market Representative represent them before the Electricity Market Operator (OMIE onwards), before the System Operator (Red Eléctrica de España, REE onwards) and before the National Commission of Markets and Competition (CNMC onwards).

The operation in the Spanish Electricity Market is as follows. The hourly electrical surplus forecasts should be sent to OMIE. OMIE will make the corresponding payments for the energy offered, and it will be necessary to make payments / receive income from REE (which makes all the settlements through MEFF company) based on the energy deviated and the cost of the deviations. The remuneration of those plants entitled to a Specific Remuneration Regime will be paid through the CNMC

GEM in the electricity market

GEM is a Market Representative of power generation plants with Specific Remuneration Regime; therefore, it is qualified to send offers to OMIE on behalf of its clients. Currently, we represent electricity producing facilities of different technologies, such as cogeneration, generation from biomass or biogas, with the capacity to do so with any of the types of technologies present in the market.

For the clients to benefit from the netting of deviations with the rest of the plants in GEM's portfolio, the representation must be in its own name before OMIE and before REE-MEFF. Therefore, GEM receives all the corresponding charges, and makes all the payments, as a consequence of the sale and purchase of electrical energy from our clients’ power plants. In this process, GEM acts as an intermediary, transferring monthly collections and payments to our clients. The representation before the CNMC will be direct, that is, the CNMC will make the payment directly to the client, in case they were entitled to any specific remuneration.

GEM allows its clients to operate in the Daily Market and in the Intraday Markets, providing them with a computer system that can be accessed via the internet with availability 24 hours a day, 365 days a year, in a simple and totally reliable way. Customers can enter their forecasts and consult all those made to date in an easy and intuitive way.

Power plants larger than 1 MW, in accordance with current legislation, must be attached to a Control Center, which will act as an interlocutor with REE, sending the information of each facility and having its instructions always executed in order to guarantee the reliability of the electrical system. GEM has a collaboration agreement with a third party to offer the Control Center service, sending the needed signals to CECRE every twelve seconds from the power plants we represent.