Intraday markets are an important tool for market parties to keep positions balanced as injections and/or off-take may change between the day-ahead stage and real-time operations. The growth of intermittent generation capacity has increased the importance of efficient Intraday markets.
Consequently, the European Commission has established a Target Model for Intraday, based on continuous energy trading where cross-zonal transmission capacity is allocated trough implicit continuous allocation. This model has been laid down into the Framework Guidelines for Capacity Allocation and Congestion Management (CACM), and soon into the network codes/guidelines.
The European Power Exchanges APX, Belpex, EPEX Spot, GME, Nord Pool Spot and OMIE (PXs) are responding to the needs of the market by establishing a transparent and efficient continuous Intraday trading environment to enable market parties to easily trade out their Intraday positions.
The possibility for market parties to trade out their imbalances is thereby significantly improved as they do not only benefit from the national available Intraday liquidity, but also from the available liquidity in other areas.
In order to help to realise this goal the PXs, together with the Transmission System Operators (TSOs) from 12 countries, have launched an initiative called the XBID Market Project to create a joint integrated Intraday cross-zonal market. The purpose of the XBID Market Project is to enable continuous cross-zonal trading and increase the overall efficiency of Intraday trading on the single cross-zonal Intraday market across Europe. The wider XBID solution will create one integrated European Intraday market.
This single Intraday cross-zonal market solution will be based on a common IT system forming the backbone of the European solution, linking the local trading systems operated by the Power Exchanges, as well as the available cross-zonal transmission capacity provided by the TSOs. Orders entered by market participants in one country can be matched by orders similarly submitted by market participants in any other country within the IT systems’ reach, provided there is cross-zonal capacity available.
The Intraday solution supports both explicit (where decided by National Regulatory Authorities) and implicit continuous trading and is in line with the EU Target Model for an integrated cross-zonal Intraday market.