All Nominated Electricity Market Operators (NEMOs) and Transmission System Operators (TSOs) have introduced a pricing mechanism for intraday cross-zonal capacities. This helps promote effective competition in the generation, trading and supply of electricity, optimizing the allocation of cross-zonal capacity and ensuring fair and non-discriminatory treatment of market participants. European-wide IDAs are a key component for completing the European Internal Electricity Market.
As of June 13, 2024, after initial technical challenges, pricing the intraday transmission capacity – via Intraday Auctions (IDAs) – is part of the Single Intraday Coupling (SIDC). It completes the SIDC market which has been based on continuous trading methods over the past years. IDAs are implicit auctions where collected orders are matched, and cross-zonal capacity is allocated simultaneously for different bidding zones, determining clearing prices for each bidding zone.
IDAs are a novelty in the intraday timeframe since capacity in the continuous intraday trading is allocated on a first come first served basis. Pricing intraday cross-border capacities will help reflect capacities’ scarcity and thereby send an adequate price signal to the market. Regional intraday auctions have existed in some European countries, but as of yesterday, IDAs take place as three European-wide auctions: at 15:00 (D-1), 22:00 (D-1), and 10:00 (D).
In line with the agreed go-live process, within the upcoming days of IDA operations, project parties will continue to closely evaluate the stability and robustness of IDA operations and will inform market participants.
