In the day-ahead market the customers have a possibility to sell or buy energy for the next 24h day in a closed auction. Orders are matched to maximize social welfare whilst taking network constraints provided by TSOs into consideration.
Nord Pool's day-ahead market covers 13 countries, 19 bidding zones and over 300 buyers and sellers place over 2000 orders every day. On a yearly basis more than 500TWh is traded.
The day-ahead market has proven its efficiency as it provides a trusted market which sets the bidding zone specific references prices for each hour.
Nord Pool provides a wide set of order types available for buyers and sellers to match the dynamics of the demand or supply they are offering. Typically, the result of the day-ahead market is used as the baseline for planning the next 24-hour period, and later changes or new opportunities are realised in Nord Pool's intraday market.
The daily process
At 10:00 the network constraints are published and then the buyers and sellers have until 12:00 CET for submitting the final bids to Nord Pool's trading platform for the auction for the delivery hours of the next day. The submitted orders are matched with other orders in the Pan-European coupling process. In the matching process, the single clearing price for each hour and each bidding zone is set where the curves for sell price and buy price meet considering the network constraints.
Hourly clearing prices are typically announced to the market at 12:42 CET or later. Following the publication of the prices, the individual result are reported to each buyer and seller. The physical obligation to deliver/consume the purchased or sold energy follows as Nord Pool nominates the trades to the imbalance settlement process applicable in each country.