Day-Ahead And Intraday Market: How To Register?

The reform of the electricity market was one of the most successful in 2019. One of the key new segments was the intraday market and the day-ahead market (hereinafter - IDM and DAM). They together with the market of bilateral agreements play the most important role in the activity of energy companies.

However, in order to understand the work of the DAM and IDM segment, first you need to understand the concepts and peculiarities of their work.

Related article: Energy Sector Reform

What is the intraday electricity market?

Intraday market is an auction, where users - market participants, place their sale orders in the system. This is followed by the so-called “acceptance”.

Let’s take an example: “Producer” LLC has placed the electricity sale bid at a price of 1,000 UAH / MWh, and another participant - “Supplier”, LLC has placed the electricity purchase bid at a price of 900 UAH / MWh and waits until the “producer’s” price decreases to UAH 900. And the system won’t conduct the transaction.

In case when supply and demand coincide in volumes and prices, the system carries out an automatic buy/sell transaction and settlement.

The picture below shows an example of how a profitable offer appeared and was quickly bought out in maximum volumes at the price set in the purchase order.

 

Also, we can see that during rush hours, electricity is quite expensive and the number of people willing to buy it decreases, because everyone is waiting for the prices to fall, which means that low prices are set. That is, this auction works on the principle of “every camper should get a feather”.

 

What is the day-ahead market?

As for the other auction - the day-ahead market - it provides that the bidder participates and pays today, and the electric power is received tomorrow.

Many people ask, Where is the electricity stored at this time?

Actually, this question is not critical for an electricity supplier. Because every day and every hour, the supplier plans the amount of electricity it intends to buy and deliver to the consumer. If, on the other hand, there is a situation that the supplier has been unable to sell some part of electricity or is short of it, it can settle this issue (sell the remaining electricity or buy the shortage) by means of so-called imbalances, balancing markets or abovementioned markets.

Related article: Example Of Registration On A New Electricity Market

Returning to the day-ahead market, many experts note that prices on the intraday market are always higher than those on the DAM.

And it’s quite logically, if the company plans for the day ahead, then accordingly, the demand should be less, because it can be envisaged and interrogated by the manufacturers. However, a significant number of market participants carry out more trades on the day-ahead market, and consequently, prices are much higher there:

 

Related article: Responsibility For Electricity Imbalances

Where can you find analytical information to compare prices in the markets and draw appropriate conclusions about your activities? 

According to the Law “On Electricity Market”, the authorized Enterprise is the “Market Operator” (hereinafter referred to as the Operator), which organizes and conducts auctions. Its peculiarity is that all operations are performed automatically and no one additionally manages the Operator’s activity.

Therefore, in order to maximally benefit from the electricity market, it is necessary to join as many markets for selling and buying electricity as possible. This will enable you to buy energy as cheaply as possible and sell it at a higher price.

Related article: How To Connect To Oblenergo

Of course, it’s not so easy to become a participant of any of the markets. For this purpose, you must first:

If you want to register in all electricity markets quickly and efficiently, don’t hesitate to call us. We will provide you with full information or perform all registration procedures on our own, without your participation.

We are ready to help you!

Contact us by mail [email protected], by phone number +38 044 499 47 99or by filling out the form:

Publication date: 12/02/2020

We are ready to help you!

Contact us by mail [email protected], by phone number +38 044 499 47 99or by filling out the form: