This significant milestone marks a major achievement in the ongoing effort to transform the energy market. It represents the culmination of months and years of collaboration, planning, and technical innovation. Through a phased approach, with carefully coordinated go live windows organized by borders and bidding zones, this implementation is a testament to the dedication of all involved stakeholders, marking a major step toward a more dynamic, flexible, and cost efficient energy market that will better meet the evolving demands of Europe and strengthen its sustainable future.
Enhanced Market Efficiency
The introduction of the 15- minute Products in intraday continuous and intraday auctions significantly enhances market efficiency by improving the granularity of energy trading. Smaller trading increments allow for a more precise alignment of energy generation and consumption, which reduces imbalances and strengthens grid reliability. This implementation also supports better pricing and resource allocation, as it more accurately reflects real time market conditions. The increased granularity helps market participants adjust quickly, improving the ac curacy and efficiency of energy trading while reducing costs.
Increased Flexibility & Renewable Energy Support
This transition also increases flexibility within the energy market. With the ability to adapt to last minute changes, market participants can respond dynamically, cutting balancing costs and optimizing operational performance. The 15 minute Products is especially beneficial for accommodating fluctuations in renewable energy sources, such as wind and solar, which helps reduce dependence on fossil fuels. This flexibility supports more sustainable and reliable energy systems by allowing for better integration of renewable energy into the market.
Economic & Strategic Benefits
The 15-minute MTU is expected to deliver significant economic benefits, including reduced imbalance penalties and adjustment expenses. By encouraging more market activity, the new system enhances liquidity and fosters a more competitive trading environment . This, in turn, will attract new participants, further boosting market dynamics. Additionally, the 15- minute MTU aligns with broader EU market goals,
promoting greater harmonization and cross border cooperation. This strategic move supports the Baltic Region ‘s energy objectives and strengthens its integration within the EU electricity market.
This milestone highlights the commitment of the SIDC project parties towards strengthening cross border cooperation, enhancing grid resilience, and driving the long-term evolution of a flexible energy landscape.
For further information on the available products in the different bidding zones, please visit the ENTSO-E and NEMO Committee websites.
About SIDC:
The Single Intraday Coupling (SIDC) is a market mechanism in the intraday timeframe defined in the CACM Regulation based on continuous trading and complemented by three intraday implicit auctions (so called “IDAs”).
The SIDC continuous trading solution is based on a common IT system with one Shared Order Book, a Capacity Management Module and a Shipping Module. It allows for orders entered by market participants for continuous matching in one bidding zone to be matched by orders similarly submitted by market participants in any other bidding zone within the project’s reach as long as transmission capacity is available. The intraday solution supports both explicit allocation (where approved by the respective National Regulatory Authorities) and implicit continuous trading. It is in line with the EU Target model for an integrated intraday market.
On the other hand, SIDC IDAs allow for the pricing of cross-border capacity in the intraday timeframe. IDAs are implicit auctions where collected orders shall be matched, and cross-zonal capacity shall be allocated simultaneously for different bidding zones, determining clearing prices for each bidding zone.
European-wide intraday coupling is a key component for completing the European Internal Energy Market. With the rising share of intermittent generation in the European generation mix, connecting intraday markets through cross-border trading is an increasingly important tool for market parties to keep positions balanced. The purpose of the SIDC is to increase the overall efficiency of intraday trading.
For additional information on SIDC go to:
http://www.nemo-committee.eu/sidc
https://www.entsoe.eu/network_codes/cacm/implementation/sidc/