|
| This is an informative document and does not replace the regulation issued by the CREG. |
|
|
| General Characteristics of the Wholesale Electricity Market
Transactions of the MEM: Energy Spot Market |
 |
The MEM in Colombia relies on a single node system. In this market, the transmission network is neutral, which implies that the generator makes its daily price offer and its hourly availability declaration, without taking into account the physical and technical restrictions in the transmission network. In this market, the energy resources to be dispatched at a particular time are selected based on the lowest price offers. This mechanism is known as the ideal dispatch and this differs from the real dispatch because the latter takes into account the restrictions that may occur in the transmission network.
In other words, the ideal dispatch, determined by the CND, is obtained expost by considering the real demand and the real supply offered by generation plants or units, without taking into account the existing physical and technical restrictions in the transmission network.
The price offers of generation companies that participate in the MEM should reflect the variable costs of generation as well as the opportunity costs.
The price of the last resource used to meet the total demand in each hour is the one that sets the price to be used to pay all the inframarginal resources [ * ] in this same hour and is known as the spot price. Energy demand from commercialization companies that is not covered by bilateral contracts will be settled at this same price.
The settlement of financial obligations and debts of participants in the Energy Spot Market is done by the ASIC.El MEM en Colombia corresponde a un sistema de nodo único. En este mercado la red de transmisión es neutral, lo que significa que el generador hace su oferta de precio para cada día y su declaración de disponibilidad de generación para cada hora, sin considerar el estado de la red de transmisión.
| * |
Inframarginal resources have marginal costs less than the market clearing price. |
|
|
|