The energy exchange has decided on a method to introduce sub-hourly, physical-delivery products to electricity markets so that these products may operate at optimal level. Its proposal has just been forwarded for public consultation.

Though participants have until January 26 to provide comments, the overall initial reaction by market players has been positive.

These new sub-hourly products, covering 15 and 30-minute durations, will offer market participants greater accuracy in terms of measurement and deviation periods through short-term contracts. They also allow for shorter-duration forecasts closer to the actual physical delivery time.

Marker players want as many tools as possible, one energy exchange official commented, while also pointing out that these tools need to be applied in accordance with existing restrictions imposed on trading methods such as auctions and continuous trading for best possible results.