Single Intraday Coupling (SIDC)
The aim of Single Intraday Coupling (SIDC) is to create a single pan European cross zonal intraday electricity market. An integrated intraday market will increase the overall efficiency of intraday trading by promoting effective competition, increasing liquidity and enable a more efficient utilisation of the generation resources across Europe.
With the increasing amount of renewable intermittent production, interest in trading in the intraday markets is increasing as it can become more and more challenging for market participants to be in balance after the closing of the Day-Ahead market. Being balanced on the network closer to delivery time is beneficial for market participants and for the power systems alike by, among others reducing the need of reserves and associated costs. In addition, the intraday market is an essential tool that allows market participants to take unexpected changes in consumption and outages into account.
SIDC is an initiative between the Nominated Electricity Market Operators (NEMOs) and Transmission System Operators (TSOs) which enables continuous cross-border trading across Europe. It is the follow-up of the XBID (Cross Border Intraday) Project which delivered, in June 2018, the go-live of the intraday continuous trading platform, thereby creating the basis for expansion across Europe, as well as further development.
The SIDC Solution was launched on 12th/13th June 2018 across 14 countries. In the first 9 months of operation some 12 million trades have been completed. It is based on a common IT system with one Shared Order Book (SOB), a Capacity Management Module (CMM) and a Shipping Module (SM). This means that orders entered by market participants for continuous matching in one country can be matched by orders similarly submitted by market participants in any other country within the project’s reach if transmission capacity is available.
The intraday solution supports both explicit (where requested by NRAs) and implicit continuous trading and is in line with the EU Target model for an integrated intraday market.
SIDC Geographical Scope and Future Go-Live Waves
The first go-live in June 2018 included 14 countries: Austria, Belgium, Denmark, Estonia, Finland, France, Germany, Latvia, Lithuania, Norway, The Netherlands, Portugal, Spain and Sweden. A second go-live with 7 further countries – Bulgaria, Croatia, Czech Republic, Hungary, Poland, Romania and Slovenia – is foreseen in 2019.
The parties involved are:
Transmission System Operators (TSOs):
50HERTZ, ADMIE, AMPRION, APG, AST, BritNed, ČEPS, CREOS, EirGrid, ELERING, ELES, ELIA, Energinet, ESO, FINGRID, HOPS, Litgrid, MAVIR, NGIC, PSE, REE, REN, RTE, SONI, STATNETT, SVENSKA KRAFTNÄT, TenneT DE, TenneT NL, TERNA, TRANSELECTRICA and TransnetBW
Nominated Electricity Market Operators (NEMOs):
BSP, CROPEX, EirGrid, EPEX, EXAA, GME, HEnEx, HUPX, IBEX, Nord Pool EMCO, OMIE, OPCOM, OTE, SONI and TGE.
The governance of the SIDC consists of two layers:
Joint NEMOs and TSOs: governed by the IDOA
Only NEMOs: governed by the ANIDOA
Only TSOs: governed by the TCID
In all cases, the governance structure follows a similar approach with a Steering Committee on top, some horizontal groups and three joint groups dealing with operations: Market & System Design, Quality Assurance & Release Management and OPSCOM.
Joint NEMOs and TSOs governance structure
What does SIDC do?
The orders submitted by the market participants of each NEMO are centralised in one shared order book (SOB). Similarly, all the intraday cross-border capacities are made available by the TSOs in the Capacity Management Module (CMM).
Order books displayed to the market participants via the usual NEMOs’ trading systems, contain orders coming from other participants of the concerned NEMO and other NEMOs in the same market area and also orders coming from market participants in other market areas, provided there is enough capacity available.
Orders submitted for different market areas can be matched provided there is enough capacity available. In such a case, the order matching is associated with implicit capacity allocation. Concretely, when two orders are being matched the SOB and CMM are updated immediately. Trade is done on a first-come first-served principle where the highest buy price and the lowest sell price get served first. The update of SOB means that the orders that were matched are removed, and consequently that the available transmission capacity in the CMM is updated. For how many borders the capacities are updated depends on where the matched orders were located geographically.
For borders where NRAs requested for it, explicit allocation is made available to Explicit Participants (currently only at the FR-DE border).
The Shipping Module (SM) of the SIDC Solution provides information from trades concluded within SIDC to all relevant parties of the post-coupling process. The SM receives data from the SOB about all trades concluded:
- Between two different Delivery Areas
- In the same Delivery Area between two different Exchanges
The data from the SOB and the CMM are enhanced with relevant TSO, Central Counter Party (CCP) and Shipping Agent data from the SM and transferred to the parties at the configured moments.
The specific product availability in different market areas is detailed in the table below:
It is expected that the availability of 15 minute products across other Market Areas will be expanded in the future.
Number of Trades per Quarter
Go-Live mid-June to September 2018 ==> 3,5 million
October to December 2018 ==> 4,3 million
January to March 2019 ==> 4,8 million
The further development of XBID is important to the parties involved in the project. Currently a new Release of XBID (Release 2.0) is being tested. This will deliver an enhanced Shipping functionality which is a prerequisite for integrating additional non-Multi NEMO areas into the intraday coupling as well as an increase in the Order Book Depth to 100 (currently 31).
Plans are underway to add functionality regarding Losses on HVDC cables as well. Cross zonal capacity pricing through auctions also needs to be integrated in line with ACER’s decision on establishing a single methodology for pricing intraday cross-zonal capacity.
In the longer-term areas that need to be addressed include Flow Based Allocation and Non-Standard Intraday Products.
Steering Committee Minutes
A User Group was convened with Market Parties (MPs) as an interface between the XBID Project and the Market. Following the successful XBID Go-Live it is agreed that the Market European Stakeholder Group (MESC) is the primary interface with MPs.