Once the LIP 14 project integration with the Single Intraday Coupling (SIDC) will go live, the current operation of implicit intraday auctions on the border Italy-Switzerland (D-1 at 16h30 – D at 11h15) will have to be ended. With the implementation of LIP 14 go live, new complementary regional intraday auctions (CRIDA) will be launched involving Italian internal borders and the borders Italy-Slovenia and Italy-Greece. These auctions will be aligned with the Pan-European Intraday Auctions planned to go-live in 2023 and do not foresee the inclusion of the border Italy-Switzerland.

The concerned TSOs, Swissgrid and Terna, will continue to offer to market participants available intraday capacity on the border Italy-Switzerland in two explicit auctions that will be performed by JAO S.E.. The allocation mechanism will be similar to the one in operation before April 2019, when the implicit intraday auctions started, with slightly different timings in order to adapt to the new Italian intraday market times. Holders of cross border intraday capacity will be able to nominate the capacity and use it to buy or sell in the respective intraday markets.

While the current implicit auctions on the border Italy-Switzerland will be maintained until the go live of LIP 14, Swissgrid and Terna are already working on the implementation of the explicit intraday auctions in order to guarantee an as smooth as possible change of mechanism. The exact date for switching from today’s implicit auctions to explicit auctions, depends on the go live date of LIP 14. Swissgrid and Terna will keep the market participants informed on the further steps towards the switch.

Background:

The Italian and Swiss power exchanges and TSOs (EPEX, GME, Swissgrid and Terna) have introduced implicit auctions for the allocation of intraday capacity on the Italy-Switzerland border in April 2019. The mechanism has been running stable since then, guaranteeing an efficient and market-based use of the available intraday capacity.

In parallel, LIP 14 has been working on the implementation of the Single Intraday Coupling (SIDC) according to the Commission Regulation (EU) 2015/1222, establishing a guideline on Capacity Allocation and Congestion Management (GL CACM). The introduction of the SIDC mechanism on all EU Italian borders has been associated with the implementation project of complementary regional intraday auctions (CRIDA) on certain Italian borders. Since LIP 14 and CRIDA are regarded by the relevant National Regulatory Authorities (NRAs) in the same CACM regulatory framework as SIDC, both mechanisms will not be applied on the border Italy-Switzerland as the preconditions mentioned in the GL CACM are currently not being met by Switzerland.