The integration of the European Union’s day-ahead and intraday electricity markets improved in 2021, according to a report published by the European Agency for the Cooperation of Energy Regulators (ACER) on Friday 25 November.
According to the regulators’ estimates, the integration of short-term electricity markets will bring additional welfare benefits of €1 billion per year.
ACER notes, however, that liquidity in the futures markets will decrease in 2021 in all Member States except Belgium, the Czech Republic, Hungary and Slovenia. An electricity market is considered liquid if a significant number of market participants are able to sell and buy products in large quantities, quickly, without significantly affecting prices and without incurring significant transaction costs.
However, liquidity remained stable in the day-ahead markets and continued to increase in the intraday markets.
The report also calls on transmission system operators (TSOs) to make an additional 40% of trans-zonal capacity available to meet the EU target that TSOs should reserve at least 70% of the transmission capacity of their network elements for cross-border trade between Member States.
See the report: https://aeur.eu/f/4bu (Original version in French by Damien Genicot)