The marketing and sales committee of Saba Group is responsible for selling the electricity produced by the companies Saba Group owns in the wholesale and energy stock markets or through signing bilateral contracts.
Sales and marketing committee of the SABA Group is responsible for selling the electricity generated by the Group’s power plants. To do so, this committee constructs optimal portfolios for selling the generated electricity through various possible options including Iran’s wholesale electricity market, energy exchange, bilateral contracts, and energy conversion agreements.
Considering wide experiences, technical knowledge and expertise of the Saba’s sales and marketing division, which have leaded to a significant growth in the income of the Group’s power plants, this division is ready to present consultation to build optimal sales portfolios and to perform sales operations for other private electricity generation companies, as well.
To obtain more information in this regards, call the Saba Group’s sales and marketing division.
Bilateral Contracts are one of the possible alternatives for direct supply of the generated electricity in power plants to the large scale industrial consumers. On the producers’ side, the major advantage of these contracts is to separate a portion of the production capacity from the competitive market and pushing aside the risk of its acceptance in the market. On the consumers’ side, there are several advantages for using these contract namely, purchasing electricity from different producers in a competitive environment, reaching an agreement on the favorable price, being listed as the last priority for demand side management programs, and etc. These contracts could be executed in two different methods: ‘bilateral contracts outside the energy exchange’ and ‘bilateral contracts within the energy exchange’.
The various contracts of electricity sale
- Guaranteed Purchase or Energy Conversion Agreements (ECA)
During this contract, Tavanir Company or (since March 2016) Thermal Power Plants Holding Company is responsible for supplying the fuel of the power plant and guarantees to purchase the produced electricity. This kind of contract was signed between Saba Group and Ministry of Energy of Iran for a duration of15 years when Zargan power plant was purchased. This contract will last for 5 years for other power plants and will be signed before the construction of the power plant. It should be noted that after the contract is expired, the electricity produced in the power plant will be sold in the competitive wholesale electricity market.
- Contract for Selling Electricity in the Wholesale Market
In this contract signed between the companies owning the power plants and the Electricity Management Network Company of Iran, the producers will present their offered prices based on the laws passed by the Electricity Market Regulatory Commission of Iran to the market manager, who will clear the next day market based on the offered prices and the amount of consumption predicted. After the market is cleared, the arrangement of the productions by the power plants and estimations as to the payable amounts to the power plants will be determined based on the arrangement and amount of production in the next day. In this type of contract fuel costs will be shouldered by the producers.
- Standard Parallel SALAM Contracts in Energy Stock Market
In this type of contract, the power plants can sell their produced electricity in the energy stock market. The electricity distributors and retail companies will form the demand part for purchasing the electricity presented in the stock market. The transactions will be carried out in various load types including base load, low load, medium load, and peak load and in various time periods such as daily or weekly.
- Bilateral Contract of Electricity Sale
The electricity offerers can sell their electricity to the consumers in the industry and mining sectors using the facilities of the electricity network of Iran in accordance to Article 2 of the regulation for the conditions and the guarantee for purchasing electricity in pursuant to Clause B of Article 25 of the Fourth Economic, Social, and Cultural Developmental Plan of the Islamic Republic of Iran. In this type of contract, the electricity producer will present a part or the whole of the electricity produced in the power plant to the consumer using the electricity network of Iran through a bilateral contract.