Central Securities Depository Of IRAN

Iran Energy Exchange (IRENEX) has introduced a new financial instrument aimed at optimizing electricity consumption in early December 2024, with Central Securities Depository of Iran (CSDI) playing an important role in collateral management and clearing the transactions related to these certificates.

This new financial instrument, known as the "Electricity Savings Certificate (ESC)" is designed to promote energy savings, stimulate related investments, and improve the cash flow of participating companies.

ESCs are tradable instruments that represent verified savings in electricity, gas, or other energy consumption achieved through technology upgrades or modifications. CSDI provides comprehensive pre-trade and post-trade services, including collateral acquisition from issuers, collateral management solutions, and trade clearing for these certificates.

IRENEX has listed two types of electricity savings certificates:

1. Energy Savings Certificates:
   Certificates issued to companies that have achieved verified energy savings. These can be used to settle future energy liabilities or sold in the secondary market.
2. Financing Energy Savings Certificates:
   Certificates issued to fund energy-saving projects. Companies commit to delivering future energy savings, and certificate holders receive energy or cash at maturity.

These new financial instruments mark a significant milestone in Iran's efforts to enhance energy efficiency and promote sustainable practices in the energy sector.

Release Date: 12/1/2024

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