NWE Intraday is a project to integrate the intraday markets of the North West Europe (NWE) region.
The Framework Guidelines for Capacity Allocation and Congestion Management, produced by ACER (Agency for the Cooperation of Energy Regulators), stipulate the introduction of a coordinated European allocation mechanism by the end of 2014. To this end, the transmission system operators of the relevant countries in the North West Europe region have launched a project to bring about this integrated intraday market.
The aim of the project is to create a single intraday market, initially in France, Belgium, The Netherlands, Luxemburg, Germany, Norway, Sweden, Finland, Danemark, Great-Britain, Switzerland and Austria, and then, in a second phase, expanding to cover the whole of Europe. Coupling the various national intraday markets will increase intraday liquidity, thus benefiting market players, while at the same time making the European electricity system more secure. Furthermore, the project will facilitate market operation for the various players involved.
Currently, within the North West Europe region (Benelux, Germany, France, Great Britain, Norway, Sweden, Finland and Denmark), a number of different, uncoordinated mechanisms for allocating intraday capacity exist side by side. These mechanisms relate to both the implicit and explicit allocation of intraday capacity.
Because of major differences in current levels of development and the models used for bilateral cross-border intraday markets, it was decided, in consultation with the European power exchanges, to implement the project in two phases:
- Interim Solution
The first step is now to deal with the cross-border project of the NWE region (North West Europe, with also Austria and Switzerland) that will result in a so-called ‘Interim Solution’, whereby a single model is used for the implicit allocation of intraday capacity in combination with the possibility of an explicit allocation of intraday capacity at certain borders.
- Target Model
The second step will be to go for a "Target Model" whereby only implicit allocation of intraday capacity is possible and the geographical scope is extended to include the whole of Europe.
In this way, the Interim Solution acts as a pilot project for the Target Model. Given its experience in implementing an implicit mechanisms on the Belgian-Dutch border (launched in February 2011), Elia will play a leading role in both phases of the project.