Nord Pool Spot
Årskonference – FSE
Det frie energimarked 2015
El-indkøb – Nye muligheder for
optimering
– fleksibelt forbrug /demand
response
10. September København
Henrik Hansen
Køber du for dyrt ind?
2 100915 FSE Årskonference
/
Oversigt:
§  Nord Pool Spot – hvad er vores rolle?
§  Day Ahead
§  Intra day
§  Automatisering
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The Nordic market model
Used for managing risks. Cash settled futures,
forwards and options. Contracts can be made for
up to six years. The system price is used as
reference price.
Day-ahead market (Nord Pool Spot)
Day-ahead auction of power for delivery the next
day. Nord Pool Spot calculates power prices
based on supply and demand for every hour the
following day.
Time
6 Years
36 Hours
Day-ahead
Reference price
for financial
market
Adjustment of trades
in intraday market
Intraday
Intraday market (Nord Pool Spot)
Continuous trading up to 30 minutes before
delivery to adjust power production or
consumption plans.
Balancing market (TSOs)
Operated by the respective transmission system
operators. Final adjustments are made to ensure
the correct frequency in the grid and security of
supply.
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Financial market
Cash settled
Physical delivery
of power
Balancing market
Financial market (Nasdaq OMX)
Adgang til børsen:
Fuldt medlemskab
Client medlemskab
Bilateral aftale med
grossist
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The day-ahead market
§  An auction of power for delivery the
following day
§  Prices are calculated based on
supply, demand and transmission
capacity (how much power can be
moved from one area to another)
§  Liquidity is key: A market with a lot
of power traded in and out leads to
depth in the market and reliable
index prices
Price
[EUR/MWh]
Market
price
Turnover
Volume [MWh]
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Daily routines in day-ahead trading
Prices are
announced to the
market
Bidding
ends
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Stages of Elspot trading products
development
Current
products on
Elspot
•  Single hourly bids
•  Block bids
Current
possibilities
in Euphemia
•  More possibilities linking
•  Profile Block Orders
•  Linked block bids
•  Minimum Acceptance Ratio
•  Conversion of block orders
(from 0% to 100%)
•  Flexible hourly buy and sell
•  Exclusive Groups
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•  <Feedback welcome!>
Block Bids
•  Flexible hourly sales offers
(new acceptance rule!)
Potential
development
of Euphemia
Not
im
in S plemen
ESA
t
M ye ed
t
More possibilities for linking
Block Bids
Today Blocks can be linked but are
limited to a single Parent – Child –
Grandchild relationship.
A
C
B
...
B
...
C
...
A - Parent
B - Child
C - Grandchild
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Possibilities in Euphemia:
More linking levels, more blocks.
Testing needed to see if performance
allows this.
C
Acceptance criteria in more complex
trees to be documented.
Implementation timeline open
Profile Block Order
A profile block order is a
regular block order where
user can define the volume
to be different in each
period over the entire time
span of the block.
Profile block orders can also
be linked.
Q
1
Hour
3
5
7
9
Block Order
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11
13
15
Block Order 2
17
19
21
23
Block Order 3
Implementation timeline open
Flexible hourly offers
§  Block order with a fixed price limit, a fixed volume,
minimum acceptance ratio of 1, with duration of 1 hour
§  User does not set the actual hour of delivery, the
algorithm determines it the according to welfare maximum
§  Same product as before, except with Euphemia, this can
be either
sell or buy
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Implementation timeline open
N2EX implementation:
”Flexi Orders”
From the ”Flexi Order”
defined by the user,
the trading system
creates an Exclusive
Group covering all
possible periods of
the day.
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The intraday market
§  The day-ahead and intraday supplement each
other, with the intraday market acting as a
balancing market to the day-ahead
§  The intraday market is continuous, and power
trading takes place until 30 minutes before the
power is delivered
§  The intraday market offers customers
opportunities for risk reduction as well as
increased profit
§  TSOs publish their power transmission capacity
to the intraday market – if transmission capacity
is available, neighboring countries can trade
§  Members ‘offer’ how much power they want to
sell and buy and at what price. Trading is then
set based on a first-come, first-served basis
between a seller and a buyer
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Market developments
Market coupling i Intraday – XBID
Higher price limits?
New products ?
30m
15m
5m
Shorter gate closure ?
30m
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15m
5m
0m
Automating what ?
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•  Evolution in automated trading has exploded in the last
decade in “traditional” markets:
Ø  164% growth between 2005-2009 on NYSE 1
Ø  75% US Stock trades originate from automated
trading systems
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Data & IoT
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Muligheder for fleksibelt forbrug:
ü Markedsmæssige rammer
ü Teknologiske rammer
https://www.youtube.com/watch?v=F1Rb8JegZ30
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Pioneering European power markets
Tak J
[email protected]
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