The transmission system operators, Amprion, EnBW TNG in Germany and RTE in France, have started a new project to harmonize their intraday cross-border capacity allocation mechanisms on the Franco-German border. At the same time, the European Power Exchange EPEX Spot will offer to its participants the possibility to access intraday cross-border capacity directly through energy trading. Subject to regulatory approval, the implementation of these major improvements is targeted for Q4 2010 and will allow a full optimization of the cross-border intraday capacity between France and Germany.
With the support of Regulators, and following the recommendations of the last Florence Forum(1) as well as the requests of market participants, the Transmission System Operators will harmonize their cross?border capacity allocation mechanisms using the existing Intraday Capacity Service, a platform of capacity allocation already used on four borders (DE?CH, DE?FR, DE?NL, DE?DK1). 6 TSOs (namely Amprion, EnBW TNG, Energinet.dk, TenneT, transpower and swissgrid) are already performing explicit allocation of intraday cross?border capacity in a continuous manner through this platform (see the Intraday Capacity Service website: https://www.intraday-capacity.com). Explicit capacity allocation (through OTC) will thus be harmonized on the Franco-German border, in both directions.
This harmonization will also enable implicit allocation of cross-border capacity between the French- German intraday markets: RTE, EnBW TNG and Amprion are now leading a new project that aims at enhancing the functionalities of the capacity platform to enable the implicit allocation of crossborder capacity through the connection of Power Exchanges energy trading platforms.
In line with this project, EPEX Spot will be allowed to connect to the capacity platform in a nonexclusive way, and to integrate in a first step the French and German intraday markets. EPEX Spot continuous cross-border trading system (ComXerv) will be connected to the Intraday Capacity Service, while the clearing and the cross-border shipping of the energy traded will be performed by European Commodity Clearing AG (ECC), the clearing house for the EPEX spot markets. In this way EPEX Spot participants can access intraday cross-border capacity directly through energy trading, simplifying cross-border trading and settlement operations. The implicit capacity allocation mechanism will allow a full optimization of the cross?border intraday capacity, thanks to a continuous matching of local and cross-border energy bids on EPEX Spot intraday trading system ComXerv. The implicit capacity allocation system will be running in parallel to the explicit capacity allocation (OTC), ensuring a non-discriminatory access to the cross-border capacity.
France and Germany, the first hubs concerned by the cooperation of the TSOs and EPEX Spot, represent together more than 1,000 TWh of yearly power consumption (over 30% of total power consumption in Europe). In 2009, 203 TWh were traded in total on the EPEX Spot power markets, by a community of 185 members; the French and German intraday markets operated by EPEX Spot and cleared by ECC constitute together the most liquid continuous intraday markets in Europe, with a total of more than 8 TWh of energy traded during the last 12 months. The harmonization of the intraday cross-border capacity allocation mechanisms and the implementation of an integrated Franco-German intraday market means better management of close-to-real time volume risks, in particular with respect to the integration of renewable energy into the grid.
Subject to regulatory approval, the implementation of these major improvements is targeted for Q4 2010. Using the existing infrastructure, and with a minimal change of current market rules, the intention is to build an open, flexible and efficient mechanism of intraday capacity allocation.
(1) The Electricity Regulatory Forum, or Florence Forum, was set up in 1998 to discuss the creation of an internal electricity market. It is currently addressing more particularly cross-border trade of electricity. Participants include national regulatory authorities, Member State governments, the European Commission, transmission system operators, electricity traders, consumers, network users, and power exchanges. The Forum meets once or twice a year, formerly in Florence and now in Rome.
