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Spot Electricity Market (MPE)

The Spot Electricity Market consists of:

  • Day-Ahead Market - MGP (energy market);
  • Intra-Day Market - MI (energy market);
  • Daily Products Market – MPEG (energy market);
  • Ancillary Services Market- MSD.

The Day-Ahead Market (MGP) hosts most of the electricity sale and purchase transactions.

  • In the MGP, hourly energy blocks are traded for the next day.
  • Participants submit bids/asks where they specify the quantity and the minimum/maximum price at which they are willing to sell/purchase.
  • The MGP sitting opens at 8 a.m. of the ninth day before the day of delivery and closes at 12 p.m. of the day before the day of delivery. The results of the MGP are made known within 12.55 p.m. of the day before the day of delivery.
  • Bids/asks are accepted after the closure of the market sitting based on the economic merit-order criterion and taking into account transmission capacity limits between zones. Therefore, the MGP is an auction market and not a continuous-trading market.
  • All the supply offers and the demand bids pertaining both to pumping units and consuming units belonging to foreign virtual zones that are accepted in the MGP are valued at the marginal clearing price of the zone to which they belong. This price is determined, for each hour, by the intersection of the demand and supply curves and is differentiated from zone to zone when transmission capacity limits are saturated. 
  • The accepted demand bids pertaining to consuming units belonging to Italian geographical zones are valued at the “Prezzo Unico Nazionale” (PUN – national single price); this price is equal to the average of the prices of geographical zones, weighted for the quantities purchased in these zones.
  • GME acts as a central counterparty.

The Intra-Day Market (MI) allows Market Participants to modify the schedules defined in the MGP by submitting additional supply offers or demand bids. The MI takes place in seven sessions: MI1, MI2, MI3, MI4, MI5, MI6 and MI7.

  •  The sitting of the MI1 takes place after the closing of the MGP. It opens at 12.55 p.m. of the day before the day of delivery and closes at 3 p.m. of the same day. The results of the MI1 are made known within 3.30 p.m. of the day before the day of delivery.
  • The sitting of the MI2 opens at 12.55 p.m. of the day before the day of delivery and closes at 4.30 p.m. of the same day. The results of the MI2 are made known within 5 p.m. of the day before the day of delivery.
  • The sitting of the MI3 opens at 5.30 p.m. of the day before the day of delivery and closes at 11.45 p.m. of the same day. The results of the MI3 are made known within 00.15 p.m. of the day of delivery.
  • The sitting of the MI4 opens at 5.30 p.m. of the day before the day of delivery and closes at 3.45 a.m. of the day of delivery. The results of the MI4 are made known within 4.15 a.m. of the day of closing of the sitting.
  • The sitting of the MI5 opens at 5.30 p.m. of the day before the day of delivery and closes at 7.45 a.m. of the day of delivery. The results of the MI5 are made known within 8.15 a.m. of the day of closing of the sitting.
  • The sitting of the MI6 opens at 5.30 p.m. of the day before the day of delivery and closes at 11.15 a.m. of the day of delivery. The results of the MI6 are made known within 11.45 a.m. of the day of closing of the sitting.
  • The sitting of the MI7 opens at 5.30 p.m. of the day before the day of delivery and closes at 3.45 p.m. of the day of delivery. The results of the MI7 are made known within 4.15 p.m. of the day of closing of the sitting.
  • Supply offers and demand bids are selected under the same criterion as the one described for the MGP.
  • Unlike in the MGP, accepted demand bids are valued at the zonal price.
  • GME acts as a central counterparty.

The Daily Products Market (MPEG) is the venue for the trading of daily products with the obligation of energy delivery.

  • The MPEG automatically admit all Participants in the electricity market.
  • Trading in the MPEG takes place in continuous mode.
  • The MPEG allows trading daily products with:
    •  “unit price differential”, for which the price indicated in the preparation of bids/asks and so the price determined on completion of the trading phase is the differential expression compared to the PUN, to which Participants are willing to trade such products;
    • “full unit price”, for which the price indicated in the preparation of bids/asks and so the price determined as a result of the trading phase is the expression of the unit value of electricity exchange subject of the traded contracts.
  • In the MPEG for both types of products (“unit price differential” and “full unit price”) are negotiable the following delivery profiles:
    • Baseload, listed for all calendar days, whose underlying is the electricity to be delivered in all the applicable periods belonging to the day being traded;
    • Peak Load, listed for the days from Monday to Friday, whose underlying is the electricity to be delivered in the applicable periods from the ninth to the twentieth day belonging to the date subject of trading.
  • Participants  of the Electricity Market that are also Participants of the PCE, enabled to register translations on the electricity accounts available, can buy and sell daily products in the MPEG.
  • The net electricity delivery position from the daily products trading exchanged in the MPEG is recorded in correspondent transactions in the PCE according to the modes set forth in the Electricity Market Rules.
  • GME acts as a general counterparty.
  • The sessions of the MPEG take place on weekdays, as specified below:
    • from 8.00 to 17.00 of D-2. If D-2 is a public holiday, the session will take place from 8.00 to 5.00 p.m. on the working day immediately before;
    • from 8.00 to 9.00 of D-1, only if such day is not a public holiday, It follows that if the day D is preceded by a public holiday, the trading session for the product to be delivered in D will take place only from 8.00 to 5.00 p.m. on the first working day prior to the day D*.

* On Friday they will be traded:

  • From 8 to 9 the products to be delivered on Saturday
  • From 8 to 17 the products to be delivered on Sundays and the products to be delivered on Monday and Tuesday (the latter product will also be traded from 8.00 to 9.00 of the session which takes place on Mondays).

The daily products currently traded in the MPEG are the products with the "unit price differential", with Baseload and Peak Load delivery profiles.
The Ancillary Services Market (MSD) is the venue where Terna S.p.A. procures the resources that it requires for managing and monitoring the system relief of intra-zonal congestions, creation of energy reserve, real-time balancing. In the MSD, Terna acts as a central counterparty and accepted offers are remunerated at the price offered (pay-as-bid).

The MSD consists of a scheduling substage (ex-ante MSD) and Balancing Market (MB). The ex-ante MSD and MB take place in multiple sessions, as provided in the dispatching rules.

The ex-ante MSD consists of six scheduling substages: MSD1, MSD2, MSD3, MSD4, MSD5 and MSD6. The sitting for bid/ask submission into the ex-ante MSD is a single one. It opens at 12.55 p.m. of the day before the day of delivery and closes at 5.30 p.m. of the same day. The results of the MSD1 are made known within 9.45 p.m. of the day before the day of delivery. GME notifies Market Participants of the individual results of the MSD2 session (as specified in the dispatching rules) concerning the bids/asks accepted by Terna within 2.15 a.m. of the day of delivery. GME notifies Market Participants of the individual results of the MSD3 session (as specified in the dispatching rules) concerning the bids/asks accepted by Terna within 6.15 a.m. of the day of delivery.

GME notifies Market Participants of the individual results of the MSD4 session (as specified in the dispatching rules) concerning the bids/asks accepted by Terna within 10.15 a.m. of the day of delivery. GME notifies Market Participants of the individual results of the MSD5 session, (as specified in the dispatching rules), concerning the bids/asks accepted by Terna within 2.15 p.m. of the day of delivery. GME notifies Market Participants of the individual results of the MSD6 session, (as specified in the dispatching rules), concerning the bids/asks accepted by Terna within 6.15 p.m. of the day of delivery. In the ex-ante MSD, Terna accepts energy demand bids and supply offers in order to relieve residual congestions and to create reserve margins.

The MB takes place in different sessions, during which Terna selects bids/asks in respect of groups of hours of the same day on which the related MB session takes place. At present, the MB consists of 6 sessions. The first session of the MB takes into consideration the valid bids/asks that Participants have submitted in the previous ex-ante MSD session. For the other sessions of the MB, all the sittings for bid/ask submission open at 10.30 p.m. of the day before the day of delivery (and anyway not before the results of the previous session of the ex-ante MSD are made known) and close 1 hour and a half before the first hour which may be negotiated in each session. In the MB, Terna accepts energy demand bids and supply offers in order to provide its service of secondary control and to balance energy injections and withdrawals into/from the grid in real time.


TIMELINE OF ACTIVITIES ON THE MPE IN RESPECT OF THE DAY D MPE schedules

 
 
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