Who can trade intraday?

What does day-ahead trading mean?


Under the term Day-ahead trading one understands the trading of electricity for the following day, on the EPEX Spot in Paris (spot market of the European Power Exchange), at the EXAA in Vienna (Energy Exchange Austria) or in OTC (Over-the-counter trading) takes place via contracts negotiated over the counter. Sometimes the term Auction market used.

Process and products of day-ahead trading

Overall, EPEX Spot, i.e. the EEX spot market, is divided into four different market regions: France, Switzerland, Germany and Austria. For the individual market regions, trading is again differentiated according to the respective transmission system operator. In the markets of Germany and Austria, the bids for the auctions for the coming day must be submitted by 12 noon. The results of the corresponding surcharges are published at 12:40 p.m. each day. From 3:00 p.m. it is already possible to conduct intraday trading for the following day.

Trading is anonymous and takes place every day, including the holidays. As a rule, full hours are traded in day-ahead trading, but some are also standardized Block bids such as the classic base or peak load or even more unusual blocks such as the morning block.

From the point of intersection between the quantity requested and the quantity offered, the Clearing price for the respective product of day-ahead trading (e.g. for a specific hour of the following day or a block). This clearing price ("Market clearing price"), basically the last successful bid, is then paid by all market participants for the respective product. The principle of the market-clearing price is the basis of the merit order effect.

The Minimum quantitythat can be traded is 0.1 MWh. For the Day-ahead trading a price range is defined between -500 € / MWh and 3,000 € / MWh. However, beyond the blocks of one hour, it is also possible to trade freely defined blocks. In the case of block bids, the quantity may not exceed 400 MW and only 100 such blocks may be traded per participant per day. The stock market index Phelix (Physical Electricity Index) is calculated from the average of all hourly contracts traded on the day-ahead market.

Development of the day-ahead stock market

The day-ahead market has a strong cross-border character, which has recently been partially disbanded due to structural problems, including at the cross-border interconnection points. The German day-ahead market was about a common one Bidding zone connected to Austria and Luxembourg, but the link to Austria was broken again on October 1, 2018, you can find out the reasons in this blog post. However, the bids are still being cleared with other European countries, namely France, Belgium, the Netherlands, Switzerland and the United Kingdom. The cheapest bids on the national day-ahead markets are used for the needs of all 15 coupled markets, up to the physical transport options between the states Border interconnectors are exhausted. This ensures that the cheapest providers come into play and that a uniform price is created on the national day-ahead markets.

In 2015 that was Trading volume the Day-ahead markets at EPEX Spot 507 TWh. Of this, 371 TWh alone came from the market area of ​​Germany, Austria and Luxembourg. In July 2015, 32.8 TWh were already in the Day-ahead auction traded, 22 TWh of which was accounted for in the Germany / Austria / Luxembourg market area.

EPEX SPOT publishes the current price and market data for day-ahead trading on its website.

How helpful was this article?
[Number of ratings: 6 Average: 4.8]

Market access

We offer access to the European electricity markets.

Learn more