NMa welcomes TenneT's plan to improve intra-day trade in electricity
Urged by the Office of Energy Regulation of the Netherlands Competition Authority (NMa), transmission system operator TenneT, together with power exchange APX-ENDEX, has drafted a proposal for improving in the short term the within-day trade in electricity between the Netherlands and Belgium. This proposal for the so-called 'intra-day' electricity market marks an important step towards coordination and integration of the Central-West European wholesale markets. Integration of these wholesale markets will benefit all energy consumers: it will have a favorable effect on price formation of electricity in the Netherlands.
Greater need for well-functioning European market
The importance of intra-day trade is becoming greater and greater. Market participants, represented by the Dutch trade association for energy producers EnergieNed, have indicated that they increasingly need a well-functioning European market. A well-functioning intra-day market would enable market participants, such as energy producers, traders, and small-CHP producers, to better control their short-term risks. Coupling of the national markets will result in better prices being given by the market, thereby making the market more desirable for all market participants.
The NMa will be closely monitoring the developments of the national and cross-border intra-day trade. It will thus be able to step in, if circumstances so dictate.
Increased share of reneweable energy sources in electricity supply mix possible
A regionally coordinated system in the Central West-European region will make it possible to accommodate cross-border fluctuations in electricity demand and supply through the market. The Dutch-Belgian project is an important step towards an integrated regional solution. This will make it possible in the future to better determine what share electricity from renewable energy sources, such as wind farms, should have in the energy supply mix.