Nominated Electricity Market Operators (NEMOs) and Transmission System Operators (TSOs) are prepared for a potential scenario where the United Kingdom leaves the EU without a deal on 31 October 2019.
Should this scenario happen, the consequence would be the removal of Great Britain (GB) from implicit day-ahead market coupling. In that case the last implicit allocation on BritNed, IFA and Nemo Link would take place on 31 October (D-1), for delivery date 1 November (D), the allocated capacity for 1 November would remain unchanged.
The first explicit allocation for day-ahead capacity on the BritNed, IFA and NemoLink interconnectors would take place on 1 November (D-1), for delivery date 2 November (D).
Given the uncertainty around Brexit, NEMOs and TSOs have agreed to a solution for the scenario where the United Kingdom leaves the EU without a deal. The solution foresees the removal of the GB bidding zone and lines connected to it from SDAC. The Single Electricity Market (SEM), which encompasses the island of Ireland, would remain within the implicit day-ahead market coupling with the SEM bidding zone operated in an isolated mode.
This solution has been successfully tested during September. SDAC allocates scarce cross-border transmission capacity in the most efficient way by coupling wholesale electricity markets from different regions through a common algorithm, simultaneously taking into account cross-border transmission constraints, thereby maximising social welfare.
The aim of SDAC is to create a single pan European cross zonal day-ahead electricity market. An integrated day-ahead market will increase the overall efficiency of trading by promoting effective competition, increasing liquidity and enabling a more efficient utilisation of generation resources across Europe.
For additional information on SDAC go to:
http://www.nemo-committee.eu/sdac
https://www.entsoe.eu/network_codes/cacm/implementation/sadc/
About Nord Pool
Nord Pool, Europe’s leading power market, delivers efficient, simple and secure trading across Europe. The company offers day-ahead and intraday trading, clearing and settlement to customers regardless of size or location. Today 360 companies from 20 countries trade on Nord Pool’s markets.
Nord Pool operates markets in the Nordic and Baltic regions, Germany, France, the Netherlands, Belgium, Austria and the UK. Nord Pool is a Nominated Electricity Market Operator (NEMO) in 15 European countries, while also servicing power markets in Croatia and Bulgaria. In 2018 Nord Pool had a total turnover of 524 TWh traded power. The company has offices in Oslo, Stockholm, Helsinki, Tallinn, London and Berlin.
Nord Pool has 25 years of power market experience built on offering flexibility, transparency, innovation, greater choice and participation to our customers.
Lysaker, 25 October 2019
For further information, please contact:
Stuart Disbrey +44 7887 409044 - [email protected]