Five European power exchanges to use Deutsche Börse technology for joint European power market
Deutsche Börse will develop and operate the technical infrastructure and various IT applications for a joint European intraday power market within the framework of the European Cross Border Intraday Initiative (XBID). The European exchanges involved in XBID – APX/Belpex, EPEX SPOT, GME, Nord Pool Spot and OMIE – signed a contract with Deutsche Börse on 9 June 2015. The XBID platform is expected to launch in 2017.
XBID is an initiative to implement the European Commission’s energy market directives. The aim of the initiative is to enable continuous cross-border energy trading in Europe. The rising proportion of renewable energies and the associated volatility regarding quantity have pushed intraday trading to the forefront in recent years. XBID will allow the matching of all cross-border transmission capacities on the same day on one pan-European platform. This helps create a joint European power market.
Fifteen power network operators from 12 countries belong to the initiative in addition to five European power exchanges. Deutsche Börse’s system will function as a central platform between the local trading systems of the power exchanges and the network operators.
„The creation of a single integrated intraday market for energy is a crucial step towards a more efficient, sustainable use of available capacities across Europe,” said Hauke Stars, Executive Board Member of Deutsche Börse responsible for the Information Technology and Market Data + Services division. “Our stable and reliable technology is a solid foundation for the European Cross Border Intraday Solution.”
Jean Verseille, Director of European Affairs, RTE, and Co-Chair of the XBID Market Project Intraday Steering Committee, said: “This is a key milestone in a complex project and reflects the intensive efforts and collaboration of the European power exchanges and transmission system operators. Deutsche Börse is a renowned provider of trading solutions and we are looking forward to the delivery of a high quality product”.
Mikael Lundin, CEO of Nord Pool Spot, and Co-Chair of the project with Jean Verseille, added: “Without doubt this is a very challenging project and reaching this milestone is a significant step. The assurance that the regulators have given us provides a foundation for moving forward.”