Intraday electricity market
European Union Electricity Market Glossary

  

 

info     

Intraday markets winter energy package 

 

 

 

 

numbering blue   organised by transmission system operators and nominated electricity market operators

what is market coupling 

 

numbering blue   based on market coupling

 

 

numbering blue   non-discriminatory

 

 

numbering blue   maximise the ability of market participants to contribute to avoid system imbalances

 

 

numbering blue   maximise the opportunities for market participants to participate in cross-border trade across all bidding zones

 

 

numbering blue   provide prices that reflect market fundamentals

 

What is bidding zone

 

numbering blue   provide reference prices longer-term hedging products

 

 

numbering blue   ensure operational security

 

 

numbering blue   allow for maximum use of transmission capacity

 

 

numbering blue   maximise the opportunities for market participants to participate in cross-border trade as close as possible to real time across all bidding zones

 

 

numbering blue   transparent

 

 

numbering blue   respect confidentiality

 

 

numbering blue   trades are anonymous

 

 

numbering blue   make no distinction between trades made within a bidding zone and across bidding zones

 

  

 

 

trade intraday markets

 

 

numbering blue   The importance of intraday markets for electricity in Europe is increasing together with the growing need for short-term adjustments due to the greater penetration of intermittent generation from renewable energy sources into the electricity systems.

 

 

numbering blue   Market operators shall must market participants to trade energy as close to real time as possible and at least to the intraday cross-zonal gate closure time determined in accordance with Article 59 of Regulation (EU) 2015/1222.

 

 

numbering blue   Intraday market provides market participants with the opportunity to trade in energy in time intervals at least as short as the imbalance settlement period.

 

 

numbering blue   Minimum bid sizes according to the Winter Energy Package should be of 1 Megawatt or less.

 

 

numbering blue   By 1 January 2025, the imbalance settlement period must be 15 minutes in all control areas.

 

 

 

 

 

Intraday market prices

 

 

ACER/CEER Annual Report on the Results of Monitoring the Internal Electricity Market in 2015, September 2016 (p. 46 et seq.) analyses the intraday electricity market prices against the backdrop of interrelated day-ahead and balancing prices.

 

According to the said Report intraday prices tend to correlate with day-ahead prices, because intraday markets usually open the trading session on the day before delivery as a continuation of day-ahead markets.

 

Intraday prices should also correlate well with imbalance prices, because the latter represent the prices that balancing responsible parties pay (or receive) for their residual imbalances.

 

In this respect, the design of balancing markets is essential to enable efficient intraday price formation.

 

This implies that all electricity, consumed or produced, should be covered by balancing responsibility, and that generation units from intermittent generation should not receive special treatment for imbalances.

 

Otherwise, renewable electricity generators (or its representatives) will have no incentive to trade in the intraday market.

 

Currently, with regard to balancing responsibility, renewable electricity generators are not treated in the same way as conventional generators in at least 15 EU Member States.

 

Furthermore, imbalance prices should be fully cost-reflective at any time, including times of scarcity.

 

The said Report of September 2016 also observes that in 2015, the utilisation of cross-border capacity in the intraday timeframe was approximately 8% higher than in 2014 and more than double the value recorded in 2010.

 

The harmonised maximum clearing price limit for single intra day coupling is proposed to be set at + 9999 Euro/MWh, the harmonised minimum clearing price limit for single intra day coupling is proposed to be set at - 9999 Euro/MWh (All NEMO’s proposal for harmonised maximum and minimum clearing prices for Single Intra Day Coupling in accordance with Article 54(2) of Commission Regulation (EU) 2015/1222 of July 2015 establishing a guideline on capacity allocation and congestion management, 14 February 2017).

 

According to the ACER's Consultation document, of 24 August 2017, Maximum and minimum clearing prices for single day-ahead and intraday coupling (PC_2017_E_02), however, ACER deems it necessary:

 

1) to implement a more dynamic automatic adjustment rule for maximum clearing prices for Single Day Ahead Coupling (PmaxDA), such that it allows for a faster alignment of the PmaxDA towards the Value of Lost Load (VoLL);


2) to introduce an automatic adjustment rule for maximum and minimum clearing prices for Single Intra Day Coupling (PmaxID), such that PmaxID is always equal or higher than PmaxDA.

 

 

Single Intraday Coupling Products

 


According to All NEMOs’ proposal for products that can be taken into account by NEMOs in intraday coupling process in accordance with Article 53 of Commission Regulation (EU) 2015/1222 of 24 July 2015 establishing a guideline on capacity allocation and congestion management, 14 February 2017, the continuous trading matching algorithm is required to support the following products:


a) Hourly: the product supports trading in 24 power contracts, one for each hour of the day. The system automatically generates these contracts and makes them available for trading one day before the delivery day at a specified time.


b) Half-hourly: the product supports trading in 48 power contracts, one for each half-hour of the day. The system automatically generates these contracts and makes them available for trading one day before the delivery day at a specified time.


c) Quarter-hourly: the product supports trading in 96 power contracts, one for each 15-min slot of the day. The system automatically generates these contracts and makes them available for trading one day before the delivery day at a specified time.


d) Predefined blocks, being single-type aggregations of hourly, half-hourly or quarter-hourly contracts. Predefined blocks combine several contiguous contracts of a single type with a minimum of two, which must be executed together.


e) User defined blocks: other than predefined blocks, these are on-demand combinations of contracts defined by the user. The delivery period of user-defined blocks (user-defined market contracts) must always be coverable by multiple regular market contracts of the product and with consecutive delivery times.

 

The EU-wide intraday platform is envisaged to go-live in early 2018 (The 6th Annual Report on Monitoring the Electricity and Natural Gas Markets, Main insights, p. 19).

 

 

 



Last Updated on Monday, 30 October 2017 21:43
 

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