The management of the Iberian spot electricity market is the responsibility of OMEL – Iberian Energy Market Operator – Spanish division, headed in Madrid that began its business in 1998.
The spot electricity market is based in the daily and intraday markets that aggregate, through market splitting, the Spanish and Portuguese zones of MIBEL.
Trading on the daily market is based on a daily auction, with settlement of energy at every hour of the following day. These prices can be different, namely when, for a given hour, the connection is congested, i.e. it is not enough to ensure all the electricity flow between the two regions.
Complementarily, there are six intraday auctions, subsequent to the day-ahead market auction, in which agents can trade power for the various hours of the day covered by that market.
The financial settlement of the transactions occurs weekly, and guaranteed with collateral.
Producers, self-producers, external agents (non residents), retailers, representatives and qualified consumers can be spot market agents. With the entry into effect of the International Agreement signed in Santiago de Compostela, on October 1st. 2004, the entities authorized in Portugal, were allowed to act on the spot market by benefiting from automatic recognition. They are no longer considered external agents.
For further information, we recommend you visit the OMIE website.