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03 intraday continuous and auctions - Europa

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Intradaycross border continuous market and optional Intraday auctions“Economically optimized nominationphase”
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COEXISTENCE OFCONTINUOUS INTRADAYCROSS-BORDERMARKET AND IMPLICIT INTRADAY AUCTIONS IN PRICE AREAS(I)
Continuous tradingIntraday Marketfor cross-borderInter Price areastransactionsIntraday auctionsafterthe continuous market has closed a price area hour fortradingA market participant could buy or sellfirmenergy located in a price area electrical system for a certain hour in the future still open for trading in the continuous trading marketIf in theprice area wheretheparticipantbought or soldfirmenergy there exists Intraday auctions, theparticipantwill have the opportunity to go toanyIntraday auction where the hour for which he bought or sold the energy is still open, for trading(“nominating”) tosell or buy the energy he tradedin the continuous intraday marketThe conditions that apply to these Intraday auctions in a givenprice area, Member State,or group ofMember States,will be decided by the correspondingRegulators
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COEXISTENCE OFCONTINUOUS INTRADAYCROSS-BORDERMARKET AND IMPLICIT INTRADAY AUCTIONS IN PRICE AREAS(II)
Intradayauctionswill offer for trading the next hour (already closed in the continuous trading market)plus all future hours still open in the continuous trading market(this last hours with no cross price area capacity)Participants that participate on the continuous trading system will have also the possibility to participate in the implicit auctions and vice versaIn the manner proposed, participants in the continuous trading market could only obtain profits from the intraday auctionsPrice acceptance participants will have the opportunity to participate in the auctions.The existing liquidity in the Spanish Intraday market will remain since the continuous trading market adds possibilitiesThe existing added welfare of the Intraday auctions is maintainedIn case maximum or minimum prices are obtained in the auction for a given hour, the trades of participants to close open positions from the continuous trading will have preference in the pro-rata
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COEXISTENCE OFCONTINUOUS INTRADAYCROSS-BORDERMARKET AND IMPLICIT INTRADAY AUCTIONS IN PRICE AREAS(III).Advantages
Having Intraday auctions, allows market participants to acquire or sell their energy at the market price. In the case of MIBEL, with enough liquidity, at prices quite similar than the day-ahead market pricesRenewable producers may thus solve their technical problems (expected deviations) buying or selling their production surplus or deficits without having to worry about the prices. They may introduce price-taking orders and the auction will ensure they obtain the right market price. Samecase for consumer or retailersIn the Spanish market, participants have automatic systems and procedures capable of presenting these bids in the different auctions. No need to look or negotiate the prices at 3 am. The offer is sent and the price will be reasonable (the market price)Similar action in the continuous intraday market could obtain very high or low prices. Having a person looking continuously at the continuous market prices does not seem viable for them (huge cost 24*7). The possibility of contracting a Trader for this purpose, only redirects the potential welfare from the consumer and producers hands to the traders’
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Injection (Sell)
Withdraw (Purchase)
CONTINUOUS INTRADAY IMPLICIT CROSS BORDER FIRM ENERGY TRADING SYSTEM
PRODUCER THATPURCHASED ENERGY IN THE CONTINUOUS TRADING MARKET
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€/MWh
MWh
Price area SellersPrice area BuyersContinuous market firm purchase energy converted to a Price area selling bid
Intraday auction renegotiation of the firm cross border energypurchasedin the continuous trading system
INTRADAY IMPLICIT AUCTION IN A PRICE AREA
INTEGRATION OF THE FIRM ENERGY PURCHASED ON THE CONTINUOUS INTRADAYCROSS-BORDERMARKET IN THE IMPLICIT INTRADAY AUCTIONS
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€/MWh
MWh
PRODUCER THAT PURCHASESENERGY IN THE CONTINUOUS TRADING MARKET FORHIS OWN NEEDSIGNORING PRICES
Price area SellersPrice area BuyersContinuous market firm purchase energy converted to a Price area selling bidPrice acceptance Price area buying order
INTRADAY IMPLICIT AUCTION IN A PRICE AREA
8
€/MWh
MWh
PRODUCER THAT PURCHASESENERGY IN THE CONTINUOUS TRADING MARKET FORHIS OWN NEEDS, BUT HE HAS A MARGINAL SUBSTITUTION PRICE(BIGGERTHAN THE RESULTANT MARGINAL PRICE IN THE AUCTION)
Price area SellersPrice area BuyersContinuous market firm purchase energy converted to a Price area selling bidPrice area buying order
INTRADAY IMPLICIT AUCTION IN A PRICE AREA
9
€/MWh
MWh
PRODUCER THAT PURCHASES CROSS-BORDERENERGY FORHIS OWNNEEDS,BUT HE HAS A MARGINAL SUBSTITUTION PRICE(SMALLERTHAN THE RESULTANT MARGINAL PRICE IN THE AUCTION)
Price area SellersPrice area BuyersContinuous market firm purchase energy converted to a Price area selling bidPrice area buying order
INTRADAY IMPLICIT AUCTION IN A PRICE AREA
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TIME
time
HourH
CONTINUOUS TRADINGNEGOCIATION
Period to sent bids to the market for hour h, and all following hour until the end of the day. Last possibility to traded energy inhourH
HourH-1

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03 intraday continuous and auctions - Europa