OSLO, June 15 (Reuters) - Europe’s largest intraday power market, launched on Tuesday to trade electricity between 14 countries, has had a smooth start and offers traders better access to energy resources and volumes, Norway’s Statnett power grid told Reuters.
The new market, called Cross-Border Intraday or XBID, came online after years of development and testing and is a collaboration between a number of power exchanges and transmission system operators across Europe.
“In principle, trades can be made directly from Portugal to Norway, if transmission capacities are available. Increasing the market allows for more trading and better access to resources for doing that,” Statnett’s spokesman Henrik Glette said.
XBID allows electricity trading between Austria, Belgium, Denmark, Estonia, Finland, France, Germany, Latvia, Lithuania, Norway, The Netherlands, Portugal, Spain and Sweden, and more countries are due to join it in 2019.
“The first days have shown positive results, and the system has performed well ... This is a major step towards an integrated European power market,” said Glette.
The new intraday market will not only ensure better utilisation of Europe’s resources, but will also create a wider so-called balancing mechanism for its members when they need more electricity than they have expected, said Statnett.
The Nordpool power exchange received XBID’s first bid in Denmark and the first deliveries were made on Wednesday, said the exchange.
XBID relies on a common IT system and a shared order book, a capacity management system and a transmission system. It allows the matching of orders entered by market participants in the different countries it covers, if capacity allows.
After its first week, project members expect trading volumes to increase, said power exchange Nordpool.
The system is designed to handle up to 400,000 trades per day, and will be developed to process both more trades and more products, said Statnett.
XBID is so far backed by 31 system operators, including Statnett, as well as 15 power exchanges.
In Finland, a country that had struggled to agree with its Nordic neighbours a new balancing market in 2017, the state-owned grid Fingrid also praised the project. (Editing by Terje Solsvik and Mark Potter)