The electricity market in Spain and Portugal is a European Market
The electricity market in Spain and Portugal is a European Market since 2014 for the day-ahead horizon and since 2018 for the intraday horizon. OMIE is the nominated market operator (which are called NEMOs in the EU) in Spain and Portugal and, in this context, it carries out the regulated function of coupling our market with the rest of Europe.
Our company is leading this integration process to the EU's Internal Electricity Market.
In fact, OMIE was one of the three NEMOs to participate in launching the new intraday continuous market on June 12, 2018. This market is intended to complement the day-ahead market already coupled with Europe since 2014, as it is one of the crucial pieces in achieving the goal of the Internal Electricity Market.
The aim of Single Day-Ahead Coupling (SDAC) is the creation of an integrated day-ahead market for electricity that covers the entire EU. This coupling is based on an auction process for the next day in which bids received are coupled in each bidding zone by the corresponding NEMOs, and the capacity for exchange between bidding zones is simultaneously assigned. To this end, close cooperation between NEMOs and system operators is necessary.
This coupling is based on an algorithm named Euphemia, which was developed by a group of NEMOs that includes OMIE.
Currently, the SDAC covers 26 countries.
You can find more information on the SDAC in the NEMO Committee website
In 2018, Single Intraday Coupling (SIDC) went into operation. It is based on a continuous market.In the continuous intraday market ,the bids received on behalf of each NEMO are sent to a centralized platform where bids are matched continuously, and the capacity for exchange between bidding zones is simultaneously assigned in the case of cross-border transactions.
the continuous market has a shared bidding book and a management module for cross-border capacities. Evidently, operating a continuous market with these characteristics needs the NEMOs and system operators from participating countries to coordinate in real-time.
Since June 13, 2024, the SIDC incorporates, in addition to the continuous market, three pan-European implicit intraday auctions (IDAs) whose matching system is based on a marginalist system, as carried out in the European daily market.
This IDAs are based on an operating process similar to the Daily Market, where the offers received in each offer zone are matched by the corresponding NEMOs and the exchange capacity between offer zones is simultaneously assigned. To achieve this, close cooperation between NEMOs and system operators is necessary, so that energy and interconnection capacity are implicitly assigned in a single matching process. Furthermore, in this case the coordination process between these IDA auctions and the continuous intraday market (and vice versa) is relevant given the simultaneity of the negotiation horizons. The European intraday auctions, together with the continuous intraday market, make up the coupling of the European intraday market, or as it is called in English terminology, the "Single Intraday Coupling" (SIDC).
The SIDC allows agents to adjust their production and consumption needs up to one hour before energy is delivered. This facilitates the optimization of generation, especially renewable generation, which requires adjustments close to real time.
This mechanism currently allows intraday market coupling for 25 countries.
The SIDC incorporates three intraday auctions implicit in the Pan-European field, in addition to the continuous market.
You can find more information on the SIDC in the NEMO Committee website.