The Report highlights progress in the coupling of day-ahead and forward capacity markets and commends all parties for the go-live of the XBID Market Project for cross-border, intraday coupling.
ENTSO-E released a ‘Joint report on the progress and potential problems with the implementation of intraday and day-ahead coupling as well as forward capacity allocation’, in line with its obligations under Article 82(2) of Regulation 2015/1222 on capacity allocation and congestion management (CACM), and Article 63(1) of Regulation 2016/1719 on forward capacity allocation (FCA).
This is the fourth in a series of Annual Reports monitoring such progress, although the addition of an analysis of FCA, including fair and transparent access for market participants to long-term transmission rights, is welcome.
More specifically the Report covers the ‘go-live’ of continuous cross-zonal trading on European Power Exchanges in 14 countries – EPEX SPOT, GME, Nord Pool Spot and OMIE. In 2015, Nominated Electricity Market Operators (NEMOs) and transmission system operators (TSOs) from 12 countries launched an initiative called the XBID Market Project to create a joint integrated intraday cross-zonal market in line with the EU target model published the same year. On 12 June 2018, the project went live and has been confirmed as the Single Intraday Coupling (SIDC) solution for European power markets, governed by the Intraday Operational Agreement (IDOA) signed in mid-2017, by all NEMOs and TSOs of the EU Member States plus Norway, but excluding Slovakian parties.
The Report concludes that all NEMOs and TSOs are also making good progress towards the finalisation of an operational agreement for day-ahead coupling (DAOA), which will cover two operational projects, namely Multi-Regional Coupling in 20 countries and the 4M Market Coupling project in four countries. Neither operation had any incidents of partial or full decoupling in 2017-2018. To organise the extension of single day-ahead coupling (SDAC), the Report provides a timeline for merging the two projects and including the South Eastern European markets.
For the first time, Long Term Transmission Rights (LTTRs) are included in the scope of the Report. They are governed by the single allocation platform cooperation agreement (SAP CA). This platform is comprised of 22 TSOs from 27 countries, performing yearly and monthly explicit auctions in Europe.