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Power Market Updates

European Power Spot Exchanges Series – Market Updates

Find all previous information for the European Power Spot Exchange series (the fundament of “Market Updates”) on:

Power Market Update Q4 – 2021 and Outlook Q1 – 2022

  • SDAC Project Phase “Closing the loop” was completed by launching market coupling for the Bulgaria-Romania border end of October. This is a further step towards an integrated european day-ahead market.

  • In the last quarter, energy prices have hit record price levels. As a reaction, european energy ministers met in order to discuss mitigating measures. In this context epexspot warned of measures interfering with market mechanics.

  • On October 1st 2021, first delivery of the North Sea Link interconnector beween Norway and Great Britain took place. NordPool expects an increased security of supply on both sides of the cable.

  • Epexspot has announced the Go-Live of a Guarantees of Origin (GOs) market in 2022. This can be seen as a reaction to a growing renewable generation and GO demand.

  • NordPool announced its concerns about the proposed market setup in the UK with no shared orderbook between the different exchanges and expects a hindered competition in the market, especially in the Intraday-market.

  • Looking ahead we are expecting a postponed Go-Live of the core flow-based market coupling. Delays in the start of the testing phase lead to a postponed go-live which will be on April 20th 2022 with delivery for April 21st 2022.

Power Market Update Q3 – 2021 and Outlook Q4 – 2021

Market Updates: What happened in the last few months in power markets across Europe? With the conclusion of the third quarter of 2021, we have taken a close look at changes in European electricity markets and the consequences for energy traders. Check out our Quarterly Update Factsheet to see if your business is affected. 

In Intraday markets, two important milestones were achieved: The Go-Live of the integration of northern Italian borders and internal Italian Bidding Zones into the coupled Intraday region and the launch of three Complementary Regional Intraday Auctions (CRIDA) between Greece, Italy and Slovenia. Two steps towards more integrated and coupled Intraday markets.

In the GB Intraday Continuous market EPEX has reacted to current market conditions and price spikes and increased the market price limit from £ 3,000 to £ 6,000 as of 10th September. Since then, prices are still in unusual ranges and market prices are moving fast.

In France, EPEX has shifted the French 30-minute Intraday auction from 14:30 CET to 17:00 CET as desired by market participants.

Looking at Europe and the efforts taken by the EU to create on single European market for electricity, all NEMOs have published the Capacity Allocation & Congestion Management (CACM) Annual Report 2020. In this context, EPEX warns that the next iteration of the Capacity Allocation & Congestion Management (CACM) Guideline might endanger market efficiency and EU climate targets.

Furthermore, as of 21st of December, the Swiss Intraday Auctions are no longer coupled with Italy. Therefore, cross-border capacity needs to be bought by market participants in addition to power, leading to potential inefficiencies, welfare losses, higher prices and might even endanger EU climate goals, as EPEX points out.

Looking ahead, the market coupling between UK and Norway is becoming operational in October 2021 with the first auctions being held. And finally, on 14th October, the All NEMO Committee will hold a Webinar together with ENTSO-E, where they share key insights of 2021 and about upcoming changes for SDAC and SIDC. Be sure to register under this link, in case you are interested:

GoTo Webinar Registration

Market Updates - Market Update Q3 - 2021 and Outlook Q4 - 2021 - European Power Spot Exchanges

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