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Intraday electricity market
European Union Electricity Market Glossary

  

Intraday market timeframe is the timeframe of the electricity market after intraday cross-zonal gate opening time and before intraday cross-zonal gate closure time, where for each market time unit, products are traded prior to the delivery of the traded products (Article 2(37) of the Regulation establishing a Guideline on Capacity Allocation and Congestion Management - CACM (Regulation on market coupling).

 

 

 

info     

Intraday markets winter energy package 

 

 

 

 

numbering blue   organised by Transmission System Operators (TSOs) and Nominated Electricity Market Operators (NEMOs)

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

According to Article 53 of the Commission Regulation (EU) 2017/2195 of 23 November 2017 (Electricity Balancing Guideline) by three years after the entry into force of the said Regulation ( i.e. by 18 December 2021), all TSOs shall apply the imbalance settlement period of 15 minutes in all scheduling areas while ensuring that all boundaries of market time unit shall coincide with boundaries of the imbalance settlement period.

 

 

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

 

 

 

 

 

 

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 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).

 

 

Intraday market liquidity

 

 

According to the Annual Report of the ACER and CEER on the Results of Monitoring the Internal Electricity and Gas Markets in 2016 (Electricity Wholesale Markets Volume) published in October 2017 (p. 47) there are factors in the near future that are expected to have a positive effect on intraday liquidity across the EU.

 

Among these factors are:

 

1. new intraday products were recently introduced or are planned to be introduced in a number of markets and borders:

 

- the launch of 30-minute products continuous ID trading in France, Germany and Switzerland on 30 March 2017,


- the plan to introduce 15-minute products auctions in the Netherlands,


- the plan to introduce 30-minute products auctions in France:

 

2. the extension of balancing responsibility to renewable electricity generators;

 

3. the implementation of a single intraday coupling (SIDC) with implicit continuous cross-zonal capacity allocation (access to a larger portfolio of bids and offers);

 

4. the intraday cross-zonal gate closure time according to Article 59 of the CACM Regulation set to at most one hour before real time (in the Decision No 04/2018 of 24 April 2018 ACER decided that the intraday cross-zonal market shall close 60 minutes (30 minutes for Estonia-Finland border) before the start of the relevant market time unit).

 

 

 

 

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Proposal for a Regulation of the European Parliament and of the Council on the internal market for electricity (recast),

30.11.2016, COM(2016) 861 final 2016/0379 (COD)

 

Article 6

 

 

 

 

 

 

Day-ahead and intraday markets

 

1. Transmission system operators and nominated electricity market operators shall jointly organise the management of the integrated day-ahead and intraday markets based on market coupling as set out in Regulation (EU) 2015/1222. Transmission system operators and nominated electricity market operators shall cooperate at Union level or, where more appropriate, on a regional basis in order to maximise the efficiency and effectiveness of Union electricity day-ahead and intraday trading. The obligation to cooperate shall be without prejudice to the application of the provisions of Union competition law. In their functions relating to electricity trading, Transmission system operators and nominated market operators shall be subject to regulatory oversight by regulators and the Agency pursuant to Article 59 of [recast of Directive 2009/72/EC as proposed by COM(2016) 864/2] and Articles 3 to 16 of [recast of Regulation (EC) No 713/2009 as proposed by COM(2016) 863/2].

 

2. Day-ahead and intraday markets shall

(a) be organised in such a way as to be non-discriminatory;

(b) maximise the ability of market participants to contribute to avoid system imbalances;

(c) maximise the opportunities for market participants to participate in cross-border trade as close as possible to real time across all bidding zones;

(d) provide prices that reflect market fundamentals and that market participants can rely on when agreeing on longer-term hedging products;

(e) ensure operational security whilst allowing for maximum use of transmission capacity;

(f) be transparent while at the same time respecting confidentiality;

(g) ensure trades are anonymous; and

(h) make no distinction between trades made within a bidding zone and across bidding zones.

 

3. Market operators shall be free to develop products and trading opportunities that suit market participants' demand and needs and ensure that all market participants are able to access the market individually or through aggregation. They shall respect the need to accommodate increasing shares of variable generation as well as increased demand responsiveness and the advent of new technologies.

 

 

 

 

 

 

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Proposal for a Regulation of the European Parliament and of the Council on the internal market for electricity (recast),

30.11.2016, COM(2016) 861 final 2016/0379 (COD)

 

 

Article 7

Trade on day-ahead and intraday markets

 

1. Market operators shall allow 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.

 

2. Market operators shall provide market participants with the opportunity to trade in energy in time intervals at least as short as the imbalance settlement period in both day-ahead and intraday markets.

 

3. Market operators shall provide products for trading in day-ahead and intraday markets which are sufficiently small in size, with minimum bid sizes of 1 Megawatt or less, to allow for the effective participation of demand-side response, energy storage and small-scale renewables.

 

4. By 1 January 2025, the imbalance settlement period shall be 15 minutes in all control areas.

 

 

 

 

 

 

 

IMG 0744

    Documentation    

 

 

 

 

 

Regulation establishing a Guideline on Capacity Allocation and Congestion Management - CACM (Regulation on market coupling)

 

ACER/CEER Annual Report on the Results of Monitoring the Internal Electricity Market in 2015, September 2016, p. 46 et seq.

 

Proposal for a Regulation of the European Parliament and of the Council on the internal market for electricity (recast), 30.11.2016, COM(2016) 861 final 2016/0379 (COD), Article 6, Article 7

 

The 6th Annual Report on Monitoring the Electricity and Natural Gas Markets, Main insights

 

 

 

 

 

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    Links    

 

 

 

 

 

 

Balancing market

 

Day-ahead electricity market 

 

Forward electricity market

 

 

 

 

 

 

 

 

 

 

 

 

Last Updated on Thursday, 10 May 2018 12:12
 

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