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HomeLatest NewsAdif opens the negotiation of contracts for the supply of green energy

Adif opens the negotiation of contracts for the supply of green energy

Date: May 31, 2023 Time: 06:29:36

Endesa Energía, Acciona Green Energy Developments, Total Energies, EDP Clientes and Iberdrola Clientes are the companies that will begin negotiations with Adif Alta Velocidad (Adif) in the coming days to contract the supply of green electricity or with Guarantee of Origin (GdO). for the system, for 1,850 million euros until 2025.

With these companies, Adif will now begin a negotiated procedure that will materialize in the bidding for a single offer modality -price indexed to the daily market with the possibility of hedging in the OMIP futures market-, so that cadador can decide the moment , the amount of energy and the time period for price hedging.

Subsequently, Adif AV will select the three most competitive offers and will start a negotiated process with the bidders. The budget of the contract amounts to 1,850.7 million, although the final cost resulted from actual consumption, the offers received, the price resulting from the OMIE (Operator of the Iberian Energy Market) wholesale market and possible price coverage in the OMIP market (Operator of the Iberian Market-Portuguese Pole, which offers a trading platform for energy derivatives).

The contract involves the supply of green or renewable energy with a Guarantee of Origin (GdO) for the railway system, that is, traction electricity for the operators, both passenger and freight for the entire network.

Adif will also carry out a negotiated procedure with EDP Clientes, Iberdrola Clientes and Endesa Energía, the distributors that have submitted an offer for the energy supply contract used in the Adif and Adif AV facilities (passenger stations, freight terminals and other venues), tendered for 158.6 million euros.

In both cases (traction power and for installations), the contracts cover the period between April 2023 and December 2025, extendable for a maximum of two years in the first case and one year in the second.

In 2021 the energy consumption for traction in the Adif and Adif AV railway network was 2,106 GWh and it is expected to rise to 2,414 GWh in 2022 due to the increase in traffic, driven by the liberalization of rail passenger transport, which has promoted the entry of new operators.

The new contractual framework includes as a novelty that each railway operator may develop its own energy price management strategy, in coordination with Adif AV.

In this way, railway operators may request price coverage of all or part of the energy that they plan to consume in a specific period of time (month, quarter or year), whose closure orders will be managed by Adif AV with the successful bidder. These hedges will be executed taking the futures market (OMIP) as a reference.

Adif has indicated, by way of example, that if an operator plans to consume 1,000 MWh in the high-speed network in January 2023, and assuming that the futures market offers an interesting price at that time, it may request Adif AV that proceeds to generate this closure order before the energy supplier under the conditions determined by said railway company. The issuance of this order may be carried out by Adif AV without the need for a consensus with the rest of the operators.

Regarding the supply of energy for the facilities, Adif AV will choose the most advantageous modality for each of the different lots tendered, which they plan to communicate to the marketers at the end of January, when it will proceed to request an improvement of the offer already received. according to the negotiated procedure.

In 2021, the consumption destined for the Adif and Adif AV facilities rose to 241 GWh and it is expected that in 2022 it will have been 248 GWh. Total estimated consumption during the term of the contract is 720 GWh.

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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