Introduction of intraday auctions with Italy

6/3/2013

On completion of successful IT tests, the Italian transmission system operator Terna and APG have now introduced a capacity auctioning mechanism for intraday on the common border between Austria and Italy.

The first capacity allocation took place on 28 May (energy delivery date: 29 May 2013). This cooperation aims to simplify cross-border energy trade and reconcile the principle of congestion management at this transfer point with the provisions of Regulation 714/2009 (EU) and the Congestion Management Guidelines. In addition, the process for the nomination of schedules was fully harmonised with the SO-SO matching approach used in the CEE region.

Given that the Italian market is currently not compatible with continuous trading, a decision was taken to organise two additional auctions on the day before the energy delivery ("day-ahead") as well as on the day of the energy delivery.

APG currently allocates intraday on all boarders through explicit PTR auctions (physical transmission rights), with the exception of the DE-AT border where an implicit link (with the possibility of an intraday stop) is guaranteed through EPEXSpot. The intraday allocation is carried out by CEPS (HU-AT and CZ-AT borders) and ELES (SI-AT borer). The Central Allocation Service Company ("CASC") in Luxemburg is responsible for auctions on the common border with Italy.

The corresponding "Rules for Intraday Capacity Allocation through explicit auctions" can be downloaded on the Terna website or the APG homepage:

http://www.terna.it/default/home_en/electric_system/Import_Export_en.aspx

http://www.apg.at/de/markt/grenzueberschreitender-austausch/intraday-kapazitaeten