|Single intraday coupling (SIDC)|
|European Union Electricity Market Glossary|
Single intraday coupling (SIDC) is an implicit cross-zonal capacity allocation mechanism which collects orders for each bidding zone from wholesale market participants and matches them continuously into contracts to deliver electricity while respecting cross-zonal capacity and allocation constraints, and is available in the intraday market timeframe once the day-ahead market allocation process has taken place.
According to Article 2(27) of the Regulation establishing a Guideline on Capacity Allocation and Congestion Management - the CACM Regulation (Regulation on market coupling) 'single intraday coupling' means the 'continuous process where collected orders are matched and cross-zonal capacity is allocated simultaneously for different bidding zones in the intraday market'.
The implementation of a single intraday coupling with implicit continuous cross-zonal capacity allocation, as laid down in the CACM Regulation, is expected to increase liquidity, because participants will have access to a larger portfolio of bids and offers to meet their balancing needs.
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 mentions (p. 49) that cross-zonal capacity was used more efficiently in 2016 in the intraday timeframe on borders where the capacity was allocated by using implicit allocation methods (61% of efficiency) as opposed to explicit or other allocation methods (40%).
Nevertheless, the said Report of October 2017 noted that the level of utilisation of cross-zonal capacity in the intraday timeframe remained low.
According to Article 8(1) of the CACM Regulation all TSOs in EU Member States electrically connected to another Member State must participate in the single intraday and (day-ahead) coupling.
Maximum and minimum clearing price limits for single intraday coupling
For the purposes of setting the clearing price limits for single intraday coupling the following definitions are used:
1. ‘harmonised maximum clearing price for SIDC’ means the maximum clearing price value, which is applied in all bidding zones which participate in SIDC; and
2. ‘harmonised minimum clearing price for SIDC’ means the minimum clearing price value, which is applied in all bidding zones which participate in SIDC.
The harmonised maximum clearing price limit for single intra day coupling was proposed by NEMOs to be set at + 9999 Euro/MWh, while the harmonised minimum clearing price limit for single intra day coupling was 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).
The above propositions have been approved by the ACER in Article 3 of the Annex I to the Decision No 05/2017 of 14 November 2017, which determined the following harmonised clearing prices for SIDC:
1. the harmonised maximum clearing price for SIDC shall be +9999 EUR/MWh,
2. the harmonised minimum clearing price for SIDC shall be -9999 EUR/MWh.
Moreover, in Article 4 of the said Annex ACER stipulated the criteria and process for establishing and amending maximum price for SIDC (see the box).
In particular, the harmonised maximum clearing price for SIDC is to be amended in the event that harmonised maximum clearing price for single day-ahead coupling (SDAC) is increased above the harmonised maximum clearing price for SIDC.
In such a case, the harmonised maximum clearing price for SIDC will also increase to be equal to the harmonised maximum clearing price for SDAC.
Any such change must be implemented and applied at the same time that the harmonised maximum clearing price for SDAC is applied.
In order to avoid strategic bidding between different market time horizons and consider decreasing flexibility of generation units due to technical restrictions, the clearing price limit for the intraday day market should always be higher than day-ahead (ENTSO—E‘s view quoted in the Annex II to the said ACER’s Decision 05/2017 -Evaluation of responses to the Public consultation on the proposal on harmonised maximum and minimum clearing prices).
Single Intraday Coupling Products
Intraday Cross-Zonal Gate Opening and Closure Times
The ACER Decision No 04/2018 of 24 April 2018 determined that the intraday cross-zonal market:
- shall open (Intraday Cross-Zonal Gate Opening Time (IDCZGOT)) at 15:00 market time day-ahead, and
- shall close (Intraday Cross-Zonal Gate Closure Time (IDCZGCT)) 60 minutes (30 minutes for Estonia-Finland border) before the start of the relevant market time unit.
Single intraday coupling may be opened to market operators and TSOs operating in Switzerland on the condition that the Swiss national law implements the main provisions of EU electricity market legislation and that there is an intergovernmental agreement on electricity cooperation between the EU and Switzerland (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. 43).
The idea that the delivery of the European intraday market coupling should be based on the cross-border ID (XBID) commercial solution was proposed by NEMOs to National Regulatory Authorities in the ‘All NEMO proposal for the Market Coupling Operator (MCO) Plan’.
The intention of this multi-NEMO solution was to bring together the whole European intraday continuous market.
Methodologies for the XBID solution were subject to the vivid debate - see EFET letter of 23 January 2018 to the European Commission DG Energy, ACER, NEMO Committee and ENTSO-E, Technical and market design improvements urgently required for XBID go-live.
The implementation of the SIDC through the XBID project was successfully launched in its first phase on 12 June 2018.
The implementation of the XBID project was considered as the formal start of the SIDC (the ACER’s stance in the Decision No 04/2018 of 24 April 2018 on all Transmission System Operators’ Proposal for Intraday Cross-Zonal Gate Opening and Intraday Cross-Zonal Gate Closure Times, p. 9), although it was not implemented on all bidding zone borders.
As from 12 June 2018 XBID is delivering continuous trading of electricity across the following countries: Austria, Belgium, Denmark, Estonia, Finland, France, Germany, Latvia, Lithuania, Norway, The Netherlands, Portugal, Spain and Sweden.
Most other European countries are to take part in Summer 2019.
XBID brings the whole European intraday continuous market together and complements the existing day ahead market.
The system accommodates the continuous matching of bids and orders from market participants in one bidding zone with bids and orders coming from its own bidding zone and from any other bidding zone where cross-zonal capacity is available.
The XBID supports both explicit allocation on the German/French bidding zone border and implicit continuous trading on all participating bidding zone borders.
Legal framework for the single intraday market coupling
Detailed rules for the single intraday coupling are stipulated in Articles 51 - 68 and Recital 29 of the CACM Regulation - see box.
Moreover, the policies and measures related to the roll-out of intraday market coupling should be described in the national climate and energy plans, the EU Member States are required to prepare under Article 3 of the Regulation of the European Parliament and of the Council on the Governance of the Energy Union.
Nevertheless, the ACER in its Monitoring report of 30 January 2019 on the implementation of the CACM Regulation and the FCA Regulation assessed (p. 5) that “[t]he design of the single intraday coupling, including the underlying capacity calculation, is not well defined in the CACM Regulation. The current development of different terms and conditions or methodologies in this area indicates that there is a significant risk that single intraday markets could be highly fragmented in terms of timeframes, design and geography. More clarity and harmonisation through the CACM Regulation would help mitigate this risk.”
Fundamentals of intraday cross-zonal capacity pricing
Basic elements for intraday cross-zonal capacity pricing, according to the ACER Decision No 01/2019 of 24 January 2019 on the methodology for pricing cross-border capacity in the intraday electricity markets, are as follows:
1. the pricing mechanism for cross-zonal capacity in the intraday timeframe is to be based on intraday auctions, as part of the SIDC, i.e. auction SIDC, and to complement the continuous SIDC;
2. the pricing of intraday cross-zonal capacity will be established by allocating the available cross-zonal capacity for the respective market time unit by intraday auctions using the marginal pricing principle;
3. the intraday auctions are to be organised as implicit auctions where collected orders are matched and cross-zonal capacity is allocated simultaneously for different bidding zones;
4. intraday auctions take into account all valid orders submitted for the respective auctions and determine a clearing price for the relevant bidding zones based on matched orders;
5. cross-zonal capacity is not allowed to be allocated to an intraday auction and continuous trading at the same time (for this purpose, the cross-zonal trade and cross-zonal capacity allocation within the continuous SIDC are temporarily suspended and during this suspension all the available cross-zonal capacity is allocated through the intraday auction), however, the intraday auction don’t have an impact on the continuous SIDC within bidding zones, for at least those bidding zones where more than one NEMO operates;
6. in case the TSOs are not able to provide the intraday cross-zonal capacity to an intraday auction, such capacity, when it becomes available, is allocated through the continuous SIDC;
7. in case an intraday auction is not able to allocate intraday cross-zonal capacity, such capacity is subsequently offered and allocated through the continuous SIDC;
8. the intraday auctions must allow at least 30 minutes of cross-zonal continuous trading for any given market time unit after the publication of the auction results;
8. the intraday auctions are to be implemented on all the bidding zone borders eligible to participate in the SIDC (this obligation applies to bidding zone borders regardless of whether they are already participating in the continuous SIDC or not).
The said ACER’s Decision established the following timing of Intraday auctions:
- one intraday auction is to be held on the day D-1 for all MTUs of the delivery day D, i.e. from the first auction MTU starting at 00:00 until the end of the delivery day D, with a deadline for bid submission at 15:00 market time D-1,
- one intraday auction is to be held on the day D-1 for all MTUs of the delivery day D, i.e. from the first auction MTU starting at 00:00 until the end of the delivery day D, with a deadline for bid submission at 22:00 market time D-1,
- one intraday auction is to be held on the delivery day D for all remaining MTUs of the delivery day D, i.e. from the first auction MTU starting at 12:00 until the end of the delivery day D, with a deadline for bid submission at 10:00 market time D.
22 October 2019
24 January 2019
6 September 2018
26 July 2018
12 June 2018
Formal start of the SIDC
24 May 2018
28 April 2018
23 January 2018
21 January 2018
13 November 2017
14 November 2017
Decision of the Agency for the Cooperation of Energy Regulators No 05/2017 on the Nominated Electricity Market Operators proposal for harmonised maximum and minimum clearing prices for single intraday coupling
24 August 2017
14 February 2017
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
All NEMOs’ proposal for products that can be taken into account by NEMOs in intraday coupling process in accordance with Article53 of Commission Regulation (EU) 2015/1222 of 24 July 2015 establishing a guideline on capacity allocation and congestion management
Decision of the Agency for the Cooperation of Energy Regulators No 05/2017 of 14 November 2017 on the Nominated Electricity Market Operators proposal for harmonised maximum and minimum clearing prices for single intraday coupling
Annex I - Harmonised maximum and minimum clearing prices for single day-ahead coupling in accordance with Article 54(1) of Commission Regulation (EU) 2015/1222 of 24 July 2015 establishing a guideline on capacity allocation and congestion management (CACM Regulation), 14 November 2017
|Last Updated on Sunday, 10 November 2019 16:29|