Energy Production

Energy producers aim to inject all the energy generated by their installations into the grid. They are compensated for this and thereby engage in an economic activity.

Their contribution goes beyond energy generation; they help promote the stability and reliability of the electricity grid. By integrating their production systems into the energy infrastructure, they supply electricity and actively participate in regulating frequency and energy quality.

Why Is Energy Generation Important in the Electricity Market?

Energy producers play a vital role in the electricity market. Their main function is to generate electricity, forming the foundation for energy supply and access at local, regional, and national levels.

Their specific functions and importance in the electricity market include:

1. Continuous Electricity Supply: Producers ensure a constant supply of electricity to meet demand. This is essential for the daily operations of households, businesses, and industries.

2. Diversity of Energy Sources: They contribute to diversifying the energy mix by using a wide range of sources. This is crucial for maintaining a stable supply and reducing dependence on a single energy source.

3. Demand Adaptation: Producers can adjust energy output based on fluctuations in electricity demand. This flexibility is key to balancing supply and demand in real time.

4. Contribution to Energy Security: By ensuring adequate generation capacity, producers play a critical role in energy security, helping prevent major supply disruptions.

What Are the Functions of Energy Producers?

The main role of producers is to convert various forms of energy into usable electricity. This involves specific technologies and infrastructure to generate electricity at scale. Key functions include:

1. Energy Sources: Producers use a wide range of energy sources to generate electricity.

2. Generation Processes: Different types of producers use specific technologies to convert energy into electricity. Examples include:

• Steam Turbine: Uses thermal energy to drive a turbine connected to an electric generator.
• Solar Panels or Photovoltaics: Convert sunlight directly into electricity via the photovoltaic effect.
• Wind Turbines: Transform wind’s kinetic energy into electricity through rotating blades connected to a generator.

3. Infrastructure and Distribution: Once generated, electricity is transmitted through distribution networks to homes, businesses, and industries. This includes transmission lines, substations, and transformers.

4. Regulation and Control: Energy generation systems are subject to strict regulations and controls to ensure safety, efficiency, and environmental compliance..

Applicable Regulations for Energy Generation Installations

Several regulations must be considered when installing energy generation systems:  

• Law 24/2013, of December 26, on the Electricity Sector.

• Royal Decree-Law 15/2018: Urgent measures for energy transition and consumer protection.

• Royal Decree 244/2019: Regulates administrative, technical, and economic conditions for self-consumption of electricity.

• Royal Decree 413/2014: Regulates electricity production from renewable sources, cogeneration, and waste.

• Royal Decree 1955/2000: Regulates transmission, distribution, marketing, supply, and authorization procedures for electricity installations.

• Royal Decree 1699/2011: Regulates grid connection for small-scale electricity production installations.

You can also consult European Union regulations governing grid access and the FAQ section prepared by i-DE to address common questions about the Generator Connection Regulation (Operational Notification Procedure).