HUPX

HUDEX
Ceegex
Energy Business Motion

Intraday auction market

Planned go-live: Q2 2024

History of the project

After the approval of the Third Energy Package, and with the higher percentages of the renewable electricity production, the introduction of Intraday Market Coupling became more urgent. To decrease the balancing energy consumption it is important to provide solutions for traders to trade electricity as close to real time as possible. In June 2014, six power exchanges (APX, BELPEX, EPEX SPOT, GME, Nord Pool, OMIE) agreed to establish the Intraday Market Coupling to which relevant TSOs joined later. This cooperation became known as XBID (Cross Border Intraday). After the approval of the MCO Plan (Market Coupling Operator Plan), the XBID project was recognized as the European target model of the Single Intraday Coupling (SIDC). According to the model, all NEMOs need to take part in this cooperation. SIDC has been expanded in several phases, referred to as “waves”. HUPX- joined to SIDC in November 2019 during 2nd wave.

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. 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 the Single Intraday Market Coupling (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.

Design

The IDAs shall be organized as implicit auctions where collected orders shall be matched and cross-zonal capacity shall be allocated simultaneously for different bidding zones. IDAs shall 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.

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

3 IDAs shall be held:

  • One IDA shall 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 IDA shall 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 IDA shall 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.

Trading will be available on 15 min Market Time Unit (MTU) on IDA market.

A new interface named IDA Central Interface Point (IDA CIP) is 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.

Among the expected 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 will be more opportunities for market participants for intraday cross-border trading.

Planned go-live date is: Q2 2024