Six European Power Exchanges agree on setting up European Cross-border Solution for Intraday Trading

The six European power exchanges APX, Belpex, EPEX SPOT, Nord Pool Spot and OMIE confirmed the signing of a cooperation agreement for a common European cross border intraday solution. In addition, an early start agreement was signed with Deutsche Börse AG for the delivery of a technical system.

The agreements, which are open to other European Power Exchanges willing to join, were signed following an intensive selection and negotiation process. The power exchanges announced that they will now continue the work of developing a common European-wide Intraday solution within a robust project framework. The work will be undertaken jointly by the participating Power Exchanges, Transmission System Operators and Deutsche Börse AG, with support from the relevant national regulatory authorities, the Agency for the Cooperation of Energy Regulators (ACER) and the European Commission.

The objective is to develop and set up a robust, efficient and reliable Intraday solution for all European power markets and their members. The six exchanges currently are active in the power spot markets (Day-ahead and mostly also Intraday) in the Netherlands (APX Power NL), the United Kingdom (APX Power UK), Belgium (Belpex), Germany, France, Austria and Switzerland (EPEX SPOT), Denmark, Norway, Sweden, and the Baltic States of Estonia, Latvia and Lithuania (Nord Pool Spot) and Portugal and Spain (OMIE). The common technical system will be based on continuous cross-border trading where intraday adjustments to trades concluded in the day-ahead market can be made.

This will help to progress the implementation of ACER’s intraday target model, as explained in the Capacity Allocation and Congestion Management Framework Guideline (“CACM FG”) adopted by ACER in 2011. The objective of CACM is an evolution of continuous intraday trading, to include intraday capacity recalculation, capacity pricing reflecting congestion and the capability to trade sophisticated products. Intraday target model implementation will make it easier for market parties to trade electricity across borders close to gate closure and keep their position in balance. The intraday timeframe is seen as increasingly important in the context of growing intermittent generation. ACER’s intraday cross-regional roadmap envisages a two-phase approach to implementing an intraday trading solution, with an interim solution based on implicit continuous trading and an enduring solution where this evolves to include intraday capacity recalculation, capacity pricing and the capability to trade sophisticated products.

Intraday trading plays an important complementary role in creating an efficient power market, as a variety of European counterparts trade, with variations in production and consumption close to delivery hour. In particular the fluctuations in renewable power generation in the course of the day have led to an increasing importance of intraday trading; in addition to that, intraday markets have partially been able to substitute demand for reserve and balancing power.  In Germany, Intraday trading started in the year 2006 at the EEX, and trading volumes and numbers of market participants, which first increased rather slow, have substantially gained momentum over the last few years and are expected to become more important in the future. With the plans to further integrate renewable energies into the market and employ market mechanisms for such integration, intraday trading will become an important element.

Source: EPEXSpot press release

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