At the end of September, the Single Intraday Coupling (SIDC) European electricity market created in 2018 was expanded for the second time. With the entry of Italy into the European intraday market, a total of 23 countries are coupled. In this country, Austrian Power Grid (APG) has been involved in the design and implementation of the SIDC since the beginning as one of a total of 30 transmission system operators and 15 power exchanges.
European internal electricity market growing
Due to the increasing share of renewable energies in the European energy mix - with weather-dependent, highly fluctuating production - market participants have to balance their respective balancing groups at ever shorter notice. A uniform, almost automated internal electricity market throughout Europe facilitates this process, but also market access per se.
Thomas Karall, Commercial Director of the Board at the Austrian transmission system operator APG states: "The current expansion of the continuous intraday market to include Italy opens up additional bidding zones. Austrian market participants can thus access additional bids from abroad. Intraday trading thus becomes more attractive, dynamic and efficient. Since the go-live in June 2018, more than 100 million trades have been facilitated across Europe. In 2020, the trading volume amounted to 82 terrawatt hours (TWh). This represents an increase of 42% compared to the previous year (2019: 58 TWh). This is a nice success and an important step for the European internal electricity market. This trend will be strengthened with the current carburisation."
More flexibility for the Austrian power grid
At the same time, a larger intraday market means more flexibility. Transmission system operators like APG handle cross-border electricity transports, are responsible for balancing generation and consumption and thus ultimately for the secure supply of electricity. "The volatile electricity generation from wind power and photovoltaics is increasingly leading to APG having to take stabilising measures. This year it was already necessary on 160 days to selectively ramp up or throttle power plants. If the balancing groups balance themselves by means of short-term trading transactions, which are carried out in real time, so to speak, depending on the current weather situation, this increases the flexibility in the electricity grid. This in turn facilitates the integration of electricity from sustainable energy sources," Karall explains the positive side effects for grid regulation. Basically, however, according to Karall: "A high-performance electricity grid is the prerequisite for maintaining the usual high quality of supply security in Austria and achieving the goals of the energy transition. We are therefore investing around 3.5 billion euros in our infrastructure over the next ten years. With our more than 100 projects, we are also supporting the increasing electrification of society, business and industry."
Sophisticated IT system
The SIDC is based on a common IT system consisting of a Shared Order Book (SOB), Capacity Management Module (CMM) and Shipping Module (SM). This solution makes it possible to combine bids from market participants from different market areas within Europe if there is sufficient cross-border transmission capacity. It supports both explicit allocation at the Croatia/Slovenia and France/Germany borders (as required by national regulators) and implicit continuous trading. SIDC is in line with the EU target model for an integrated intraday market.
Next expansion expected in 2022
In addition to Italy, the following countries already operate the SIDC: Austria, Bulgaria, Belgium, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Hungary, Latvia, Lithuania, Luxembourg, Norway, the Netherlands, Poland, Portugal, Romania, Slovenia, Spain, Sweden. The next enlargement is expected in 2022.
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