Introduction HUPX ID Market

HUPX INTRADAY MARKET WORKSHOP

AGENDA for today

14/01/2016 BOSCOLO BUDAPEST

13:00 – 13:10

Welcome

13:10 – 13:30

HUPX Intraday Market Project Introduction

13:30 – 14:15

HUPX Intraday Market design, products and trading

14:15 – 14:45

HUPX Intraday Market clearing and settlement

14:45 – 15:00

Coffee break

15:00 – 15:45

DBAG Commodities Market Solutions: the M7 Trading platform

15:45 – 16:15 16:15 – 16:45

Zsolt Bertalan – HUPX Zrt. CEO Júlia Lobenwein – HUPX Zrt. Head of Sales György Istvánffy – HUPX Zrt. Head of Operations and Market Development Anke Voigt – ECC Member Readiness

Toralf Michaelsen – Deutsche Börse, Vice President, Commodities Markets

Members Reports Juhász Gabriella - HUPX Zrt. Market Development Expert Membership and fees Júlia Lobenwein – HUPX Zrt. Head of Sales

Day before delivery

Physical futures

HUPX Markets

Trading

Day-ahead

Intraday

Auction trading

Delivery day

Delivery

Trading Trading

Delivery Delivery

Continuos Trading

Why now and where is the liquidity going to come from?

ID

Market trends and circumstances are setting the direction towards ID timeframe for market operators

Launch of the ID Market Why now? EU legislation (3. Energy Package, IEM, CACM GL)

Growth of intermittent RES-E generation

Shift towards trading closer to delivery

Smart development

Wind and Solar Generation in EU-28 ID Trading Strong growth of intermittent generation

GWh 350 000,0 300 000,0 250 000,0 200 000,0

150 000,0 100 000,0 50 000,0 0,0

Solar

Wind source: Eurostat Picture: Wikipédia

Wind and solar generation in CEE ID Trading RES growth in CEE

SK Solar

18 000,0

SK Wind

16 000,0

SI Solar SI Wind

GWh

14 000,0

RO Solar

12 000,0

RO Wind

10 000,0

HR Solar HR Wind

8 000,0

AT Solar

6 000,0

AT Wind

4 000,0

CZ Solar CZ Wind

2 000,0

HU Solar

0,0 2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Growing market share of less predictable RES generation (wind, solar) creates demand for IDM

HU Wind

forrás: Eurostat

ID Trading Cross border capacity allocation

Y = Yearly allocation M = Monthly allocation D = Daily allocation ID = Intraday allocation

Coordinated auction: JAO: Y, M CZ-SK-HU-RO MC: D CEPS: ID

One-sided auction: MAVIR: M, D

Coordinated auction: JAO: Y, M, D CEPS: ID

Common auction: MAVIR: Y, M CZ-SK-HU-RO MC: D TRANS.: ID No connection

Coordinated auction: JAO: Y, M, D

Common auction: MAVIR: Y, M EMS: D, ID

Cross border capacity allocation for ID timeframe is available on four HU borders.

source: www.mavir.hu

HU - AT

ID Trading Cross border ID capacity auctions

Solution (operating TSO):

Sessions:

Bids submitting for ID session closing time (CET):

HU - SK

HU - RO

HU - SR

DAMAS (CEPS)

DAMAS (CEPS)

DAMAS (Transelectrica)

DAMAS (EMS)

6 x 4 hourly

6 x 4 hourly

6 x 4 hourly

6 x 4 hourly

H – 2:30

H – 2:30

H – 3:00

H – 2:30

Ultimate goal according to CACM: continuous allocation of 15 min capacities

The IDM is the last “commercial” opportunity for market participants to balance their position.

Management of forecast errors

Differences between the Day-ahead hourly profile and the real consumption

ID Trading Optimalization Better alignment to real load profile

 Power Plant optimization closer to delivery

 Adjustment of the results of the day-ahead auction

 Power plant outages  Renewables forecast errors  Forecast errors of demand

 Smoothing the hourly curves to 15 min balancing curves

KÁT

ID Trading

KÁT (RES) volume to be traded on HUPX DA & ID Markets

XBID Compatibility: Optimization of intraday cross border trading

Large Energy Consumers portfolio optimization

Optimization of Power Plant Production and Outages

Benefits of a Liquid ID Market Decreasing KÁT allocation costs

Increasing Liquidity on the ID Market

Decreasing Optimization cost for MPs

Savings for all Market Participants

KÁT

ID Trading Benefits of a Liquid ID Market

Organized Intraday Market provides more opportunities for market players to reduce their need for imbalance energy. In case market players will take advantage of a liquid intraday market, the following benefits can occure: Decreasing amount of balancing energy

Decreasing fees of imbalance energy (excluding all other effects)

Less balancing activity for system operator Higher level of system security can increase security of supply

In a longer term, the need for system reserves may decrease

Thank you for Your Attention!