HUPX

HUDEX
Ceegex
Energy Business Motion

Intraday auction market

1. History of the project

An integrated intraday electricity market is promoting effective competition and pricing, increases liquidity and enables a more efficient utilisation of the generation resources across Europe, which was already implemented through Single Intraday Market Coupling (SIDC).  Being balanced on the network closer to delivery time is beneficial for market participants and for the power systems by reducing the need of reserves and associated balance energy costs eventually paid by end consumers.

Pricing the intraday capacity, i.e. Intraday Auction (IDA) is part of SIDC and it completes the SIDC market which is currently based on continuous trading method.

The main goal of IDA project is the implementation of IDA in the EU as well as in Hungary, which is required by Article 55 of Commission Regulation (EU) 2015/1222 CACM under “Intra-day capacity pricing”. The aim of the methodology is to price the scarce of cross-border capacities, which cannot be realized in continuous trading. It also further strengthens the competitiveness of EU electricity markets concerning the electricity producing, trading and supply (CACM Regulation 3 (a)), taking into account the importance of creating a level playing field for market participants in intra-day markets. Effective competition can be achieved by creating a single cross-zonal intraday auction market.

Thanks to the effective cooperation between Nominated Electricity Market Operators (NEMOs) and Transmission System Operators (TSOs) the IDA project went live successfully on 13.06.2024, and for the first time ever, a Big Bang go-live approach was implemented (unlike the Continuous Intraday Market — which required four waves between 2018 and 2022 to cover the entire geographical scope).

2. Design

The IDAs is organized as implicit auctions where collected orders are matched and cross-zonal capacity is allocated simultaneously for different bidding zones. IDAs is taking into account all valid orders submitted for the respective auctions and determine a clearing price for the relevant bidding zones based on matched orders.

Cross-zonal capacities cannot be allocated simultaneously on IDA and during continuous trading. Therefore cross-zonal capacity allocation within the continuous SIDC is suspended for a limited period during which the cross-zonal capacities can not be allocated through the continuous SIDC.

3 IDA must be held:

  • One IDA 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 IDA 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 IDA 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.

Trading is available only on 15 min Market Time Unit (MTU) on HUPX IDA market, however there are some bidding zones which stayed in 30 or 60 min MTU.

In order to allow orders from different bidding zones to match each other, a Cross Product Matching (CPM) solution has been implemented in the European auction matching algorithm (Euphemia) – enabling for example 60min contracts in PL to match with (sets of four) 15min contracts in HU.

A new interface named IDA Central Interface Point (IDA CIP) has been developed to establish connection between the auction algorithm and the continuous trading algorithm.

XBID is used as source of network constraints data for IDA and to validate the IDA results in terms of capacity meet the network constraints. Network data are provided via NEMOs to EUPHEMIA (auction algorithm). IDA results are submitted to XBID to update the information about Already Allocated Capacity in XBID and to reflect in relevant CMM files the existence of capacity reserved for IDA results.

The cross-zonal capacity allocation of the SIDC Continuous markets is halted between all SIDC bidding zones during two time laps of 20min before, and 20min after, the gate closure time of each intraday auction. During this time, the cross-border capacity displayed in the M7 Hub-to-Hub matrix is set automatically to 0. All active orders submitted before the cross-zonal capacity allocation halt period will remain active on M7 screen under their “_XB” contract name, unless they have been hibernated or cancelled by the trading member during this market coupling halt period. During IDA halt local intraday market is available.

For IDA1 the available capacities are the remaining capacities from DAM. For IDA2 and IDA3 intraday capacities are recalculated.

In normal conditions, the Final Market Results are published 20 minutes after the Orderbook Gate Closure Time. No Second Auction procedure is available.

In case one of NEMOs has issue, IDA for HUPX (and for most of the NEMOs) is stopped. Local continuous market is available until capacities are released. No partial coupling in the region is possible only for OMIE, GME and HENEX.

API option is available for Market Participants on IDA market from go-live date.

The IDA project was launched successfully on 13.06.2024. Among the benefits of the IDA project, in addition to fulfilling the legal requirements, is the more efficient allocation of the limited cross-border capacities, as well as there are more opportunities for market participants for intraday cross-border trading. IDA is bringing additional balancing opportunities for market participants, closer to delivery and with finer contracts granularity.