Trading platform enables improved exchange of electricity within Europe
The Netherlands Authority for Consumers and Markets (ACM) has approved the use of the European Cross Border Intraday trading platform (XBID) in the Netherlands, enabling the trade of short-term electricity within Europe. This is a milestone in the European integration process of electricity markets. This trading platform allows the swift and flexible exchange of electricity between European countries. This ability is critical to a successful energy transition. ACM will ensure that the supply of energy will continue to be secure, affordable, and sustainable in the future as well.
Supply of sustainable energy fluctuates
As we, Europeans, increasingly use solar and wind power, the ability to exchange electricity in a fast and flexible manner within Europe becomes ever more necessary. After all, supply of such sustainable energy depends on whether or not the sun is shining or the wind is blowing, whereas the electricity that is generated can only be stored for a limited period of time.
Trading electricity up to one hour in advance
Cross-border trade in electricity on the XBID-platform concerns the so-called intraday-market. On this market, market participants are able to trade electricity up to one hour in advance. On this platform, market participants are able to decide immediately, based on the price, whether or not to trade. Market participants do not have to think about what country the electricity comes from, and whether or not there is sufficient transmission capacity available. The platform determines and calculates this automatically, meaning market participants will directly see the price at which electricity is available. This kind of trading is also called implicit trading. Initially, a dozen or so EU member states will participate. It is expected that, eventually, all European countries will participate.
Platform launches on June 13
ACM has been involved in the creation of the XBID-platform. With this decision, the Electricity Network Code, Electricity System Code, and the Definitions Code will change so that the XBID-platform can be launched on June 13, 2018.
Energy markets in transition
‘Energy markets in transition’ is one of the key priorities on ACM’s Agenda for the next two years. In the energy market, ACM wishes to make sure the transition to sustainable energy sources takes place efficiently, thereby preventing the energy transition from becoming more expensive than necessary. Having well-functioning markets in that process is critical. Consumers and businesses must be able to rely on the security of supply during the transition.