Towarowa Giełda Energii (TGE) begins independent operation as a full-fledged power exchange - PCR coordinator and operator on the European Multi-Regional Coupling (MRC) market TGE uses new technology, the SAPRI Power Auction delivered by Nasdaq, to manage the international energy trading, which places TGE in the group of few European power exchanges which can effectively compete on the Day-Ahead market.
The SAPRI Power Auction system is dedicated for management of electricity trading on the Day-Ahead market in the PCR standard and allows improvement of the orders forwarding process in the PCR model, as well as forwarding advanced types of orders. The technology provides full security of the system in cooperation with the systems of European power exchanges.
As a result of changes introduced to the transaction system, TGE will offer electricity Day-Ahead market transactions everyday, in two sessions. The morning session will include only local transactions and the noon session - also trans-border transactions, allowing comparison of the Polish market offers with the Lithuanian and Swedish markets, using the SwePol Link and LitPol Link connections transmission capacity. Technical capacity of the exchange results from the transmission capacity at each of the directions determined everyday in specific time of the day by PSE. The new system allows improvement of the standard of services provided by TGE and a comfort of spot market participation for the users.
“Performing the function of an independent MRC market operator is a milestone in the history of TGE, a result of many years of preparations and cooperation with Polskie Sieci Elektroenergetyczne (PSE) and the Energy Regulatory Office. A full participation in creation of the regional European markets in cooperation with the European power exchanges offers new development opportunities for TGE,” says Piotr Zawistowski, acting President of TGE.
The status of MRC market and participation in the PCR project means an opportunity of active and full participation of TGE in regional market projects and implementation of the EU mechanisms of the electricity market in cooperation with power exchanges and operators of the European transmission networks. Currently, the trans-border electricity trading in the PCR model is executed at the border of Poland with Sweden and Lithuania. In the future, the model will be also applied at other borders of the Polish power system as a result of the project works conducted on the Central European market within the framework of the CORE project.
There are also joint activities of the European Nominated Electricity Market Operators (NEMO) conducted currently in order to provide new cooperation agreements for the Day-Ahead market and the Intraday market. The new Intraday market in the XBID model will be launched in stages at specific borders starting from 2018. Poland is presumably going to join that market model at the turn of 2018 and 2019.
Launching SAPRI constitutes another step in implementation of new technological solutions at TGE. In May 2017, TGE launched the a new matching engine and its subsidiary - Warsaw Commodity Clearing House - implemented a new transaction clearing system. Both systems have been created and delivered by Nasdaq.
Multi-Regional Coupling
TGE belongs to the joint European MRC electricity market since July 2015. MRC means a Pan-European project aimed at integration of electricity markets in Europe using the market coupling mechanism for transborder Day-Ahead markets in cooperation of power exchanges and transmission system operators. Joining of the local electricity markets in the EU takes place on the basis of the Price Coupling of Regions initiative. TGE is a co-owner of the project.
CACM Regulation
Commission Regulation (EU) 2015/1222 establishing a guideline on capacity allocation and congestion management (“CACM Regulation”) charged all Nominated Electricity Market Operators (NEMO) with the obligation to draw up a plan defining the manner of establishing and performing the market coupling operator (MCO) function by NEMO and present it for approval to all the local regulatory authorities dealing with electricity. The document constitutes legal framework for preparation of further documents of the electricity spot market by NEMO, including the rules of cooperation of multiple NEMOs on one market (the so called Multi-NEMO Arrangements), multilateral operating agreements, regulations etc. The goal of the CACM Regulation is, among others, to support effective competition in the area of generation, trade and delivery of electricity, ensuring optimum use of the transmission infrastructure and contributing to effective, long-term operation and development of the European transmission system and the electricity sector of the EU.
NEMO
TGE holds the NEMO status since 2 December 2015. The basic task of TGE as a NEMO is to ensure uninterrupted creation and effective operation of the joint European electricity market. NEMO means an entity which allows bringing together offers of sale/purchase of electricity, concluded on the Day-Ahead and Intraday markets in international trade, executed in the PCR market coupling model. Those functions are defined as Market Coupling Operator – MCO - in transborder electricity trading.
Press release (pdf).