Cross border intraday trading over NorNed cable First results 15-29 March
XBID & Elbas • Cross border intraday trading = Implicit allocation of transmission capacity • Elbas platform • •
Operational in Nordic region since nineties Operational in BE-NL: coupled since 16 Feb 2011
• Both regions coupled over NorNed since 14 March 2012
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XBID NO2-NL • XBID NO2-NL: first trades for 15 March 2012 • Between 15-29 March, a total of 2083.7 MWh was traded over the NorNed cable via Elbas • •
• •
NO2-BE: 1983.1 MWh BE-NO2: 30.2 MWh NO2-NL: 70.0 MWh NL-NO2: 0.4 MWh
> In total 2013.3 MWh extra trading opportunities created in BE, despite high ratio of day-ahead congestion on NorNed
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NorNed: day-ahead congestion • Average day-ahead price spread 15-29 March • NO2-NL: 18.23 €/MWh • DA flow caused congestion on NorNed cable in NO2-NL direction 94.4 % of hours from 15-29 March • Average day-ahead prices in March • Belpex DAM 45.18 €/MWh • APX Power NL 44.71 €/MWh • Nordic system price 29.20 €/MWh • Nordic hydropower reservoirs • 46.3 % full • Compared to 39.6 % seasonal average
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Continuous implicit capacity allocation
No capacity (comparable to today’s situation) Market A Buy
Market B Sell
Buy
Sell S:20MW@80€
S:20MW@80€ S:50MW@75€ S:25MW@70€
P:50MW@70€
P:25MW@65€
P:25MW@65€
P:30MW@60€
P:45MW@60€
Market A: Liquid / low spread
Market B: few sell / high spread
Continuous implicit capacity allocation
ATC A->B = 60 MW Market A Buy
Market B
S:20MW@80€ S:50MW@75€ P:50MW@70€ P:10MW@65€
Buy
Sell
S:25MW@70€
ATC 60
Sell S:20MW@80€ S:35MW@75€
P:50MW@70€
P:25MW@65€
P:25MW@65€
P:30MW@60€
P:45MW@60€
• With 60 MW capacity from A to B • 60 MW cheapest sell orders in A are shown in B • 60 MW most expensive buy orders in B are shown in A
S:25MW@70€
Continuous implicit capacity allocation
ATC B->A = 30 MW Market A Buy
Market B
S:20MW@80€ S:20MW@80€ S:50MW@75€ P:50MW@70€ P:10MW@65€
Buy
Sell
S:25MW@70€
P:25MW@65€ P:30MW@60€
ATC
S:20MW@80€ S:35MW@75€
60 30
Sell
P:50MW@70€ P:25MW@65€
S:25MW@70€
P:25MW@65€ P:45MW@60€
• With 30 MW capacity from B to A • 30 MW most expensive buy orders in A are shown in B • 30 MW cheapest sell orders in B are shown in A (but only 20 MW available)
Continuous implicit capacity allocation
Matching Market A Buy
Market B
S:20MW@80€ S:20MW@80€ S:50MW@75€ P:50MW@70€ P:10MW@65€
P:25MW@65€ P:30MW@60€
Buy
Sell
S:25MW@70€
ATC
S:20MW@80€ S:35MW@75€
60 30
Sell
P:50MW@70€ P:25MW@65€
S:25MW@70€
P:25MW@65€ P:45MW@60€
• A sell order of 25 MW in market A can match a buy order in market B
Continuous implicit capacity allocation
Netting Market A Buy
Market B Buy
Sell S:20MW@80€ S:20MW@80€
ATC
S:50MW@75€ P:25MW@70€ P:10MW@65€
P:25MW@65€ P:30MW@60€
S:20MW@80€ S:35MW@75€
35 55
Sell
P:25MW@70€ P:25MW@65€
P:25MW@65€ P:45MW@60€
• 25 MW of capacity used in the direction A -> B (ATC A->B = 60 – 25 = 35) • 25 MW can be netted in the direction B -> A (ATC B->A = 30 + 25 = 55) • Orderbooks are updated accordingly Continuous implicit capacity allocation makes intraday markets more efficient and creates more opportunities for market players