Safety mechanism to limit energy exchange fluctuations

Sizeable electricity price discrepancies – compared to day-ahead scheduling market levels – observed by officials in ongoing dry-run testing of Energy Exchange markets ahead of the target model launch scheduled for September 17 and attributed to unrealistic offers made by participants, are expected to narrow as more participants become involved.

Even so, officials supervising the simulated testing of all four Energy Exchange markets – day-ahead, intraday, forward, balancing markets – plan to introduce a safety mechanism enabling participants to make improved follow-up offers if price levels fluctuate beyond upper and lower limits.

Officials at related agencies and the energy ministry are confident the dry run will be completed on time despite being up against a very tight schedule.

The head officials of RAE, the Regulatory Authority for Energy, the energy exchange, and power grid operator IPTO held a summit meeting yesterday with energy minister Costis Hatzidakis and the ministry’s secretary-general, Alexandra Sdoukou, to discuss the progress of the dry run. Other officials meet on a weekly basis to discuss the effort.

To date, any technical issues that have arisen have been resolved. Both the Energy Exchange and IPTO appear ready for the real-life launch. Market systems have been undergoing continual testing since August 3.

However, a shortage in the number of dry-run participants, especially traders, has been observed. This is concerning as current evaluations of the market system performances cannot be considered entirely accurate. All key players – gas-based electricity producers, suppliers, traders, RES producers and aggregators – must be involved in the simulated testing for a dependable picture.

Once the Energy Exchange and IPTO have declared their readiness, RAE will need to offer its approval of the dry run on September 11, a week before the target model’s scheduled September 17 launch.

The aim is for all players to have entered the market systems on September 15 to prepare their orders for the launch two days later.

Crucial week for target model’s dry-run tests of market systems

Though any glitches that have emerged during ongoing simulated testing of all energy exchange market systems ahead of a target model launch scheduled for September 17 have been quickly resolved, officials remain concerned about the venture’s level of readiness.

The number of participants for the dry run’s virtual transactions, especially traders, has been insufficient, while participants are submitting unrealistic offers, officials have observed.

This has prompted major fluctuations as well as sizable electricity price discrepancies compared to day-ahead scheduling market levels.

Market systems at the Energy Exchange, to operate the day-ahead, intraday and forward markets, and at the power grid operator IPTO, operating the balancing market, have been undergoing continual testing since August 3.

This week will be crucial as an increase in the number of participants is anticipated, while heightened maturity in bidding methods is also expected, all of which should result in safer conclusions.

For the time being, a deferral of the target model’s September 17 launch date is not being considered. All operators must declare complete readiness to RAE by September 11 if this launch date is to be maintained.

Electricity price levels, once the target model is launched, cannot be forecast at present. This could be possible within the next few days.

Officials at the energy ministry, RAE, the Regulatory Authority for Energy, the energy exchange and IPTO, all monitoring the effort, are scheduled to stage their next weekly meeting tomorrow.

Energy exchange dry run starts, target model launch nearing

Simulated testing of all energy exchange market systems, the dry run, began yesterday, as officially scheduled, putting the launch of the target model on the final stretch.

Market systems linked to power grid operator IPTO, the Greek energy exchange, as well as EnexClear, an energy exchange subsidiary tasked with clearing transactions, are now operating under conditions of virtual reality, signaling the beginning of final-stage testing to be completed at the end of this month.

During the dry run, participating producers and buyers will be making simulated offers and purchases, the objective being to identify possible operational faults or insufficiencies for correction ahead of the official launch of the target model, scheduled for September 17.

All four energy exchange markets – the day-ahead, intraday, forward and balancing markets – are being tested. The energy exchange is in charge of the first three while IPTO is operator of the fourth.

Following August 11, EnexClear will take on a more active role for transaction clearances, a procedure to be performed on a weekly basis.

The overall procedure’s schedule was formalized by a ministerial decision signed on July 10.