Electricity spot market should follow three principles
on June 26, Arnold, director of epex spot, the largest energy exchange in Europe ˙ During the second international power market summit, Weiss shared with his Chinese counterparts the experience of establishing a spot electricity trading market in Europe. He said that the establishment of the spot trading market should adhere to a number of principles, that is, to establish the market with the principle of neutrality and fairness, and pay attention to the combination and complementarity of the day ahead market and the day ahead market. At the same time, comprehensive consideration should be given to various factors to divide the bidding division, so as to improve the final closing of 377.5, up 3.71% for more market operation services
neutral and fair market construction
Arnold ˙ Weiss said that the most important principles in the construction of power market are "neutrality" and "fairness". "As an exchange, it must be neutral and fair, so that it can get the trust of all market trading subjects, and then choose the appropriate platform for trading."
Arnold ˙ Weiss also believes that the electricity market must be anonymous. "For example, an order is concluded in an anonymous trading market, but the identity of the trading party is unknown. Another important market organization principle is that the market itself should guarantee, that is, for each transaction concluded in the market, there is no need to worry about whether the trading party defaults. If one party defaults, the exchange will punish the market subject, rather than individual punishment. In this way, the punishment will be more effective, and More just. "
Arnold ˙ Weiss said that transparency is an important feature of the power market. The exchange should disclose the trading volume and trading price, so as to form a very transparent and fair environment. At the same time, the public trading data is also an important basis for the energy regulatory department to supervise the entire power market
combination of different markets
day ahead market and intra day market are two important parts of the spot trading market, Arnold ˙ Weiss introduced that the European electricity market can be divided into wholesale services and system services from the large structure, and the wholesale market can be divided into floor trading and OTC trading. The floor market is divided into two parts, one is the derivatives market, and the other is the spot market. The spot market is divided into day ahead market and day ahead market, both of which are in the charge of the spot exchange, and the next level of real-time balance in the day ahead market is in the charge of the electricity operator
"in fact, the design concepts of the day ahead market and the day ahead market are different, but the two can complement each other. The day ahead market is a one-time bidding market, which can be subdivided into products that have become stable growth, structural adjustment, mode transformation and benefit increase; the day ahead Market is a listing process of continuous trading, and products that are more subdivided than an hour can be traded." Arnold ˙ Weiss said
he said that different market designs are due to the different initial goals of the two markets. "What the day ahead market pursues is the maximization of market liquidity, which should cover the maximum amount of information in the whole market. Then the price index from the day ahead market can be used as the price benchmark of the whole market. And the day ahead market is to give the market subject the last opportunity to correct the position, such as observing whether the transaction is buying more or less, and making the final deviation adjustment." Arnold ˙ Weiss believes that "the price coming out of the day ahead market is a commonly used index of financial derivatives, while the price index coming out of the day ahead market is closer to the equilibrium market."
comprehensive consideration of bidding partition
Arnold ˙ Weiss introduced that the bidding division of the European spot market is characterized by only one price in each division, and there are no trade restrictions or transmission restrictions in each division
"we often use the concept of 'copper plate law'. Because the resistance of copper plate is small, power can be transmitted from any point above to another point without restriction, and bidding zoning is also divided based on this principle." The bidding division of the European spot market is theoretically defined according to which region has less congestion. But the result that finally happens to be displayed is very similar to that defined according to the boundaries between countries. "Of course, there are many political reasons for this. For a country's government agencies, having the same price is like having the same time zone. To avoid collision, to some extent, this can save a lot of work and resource consumption." Arnold ˙ Weiss said
in addition to political factors, there are also many economic considerations in the division of bidding zones
Arnold ˙ Weiss believes that the larger the bidding area is, the higher the liquidity of the market will be, and the overall social welfare that can be optimized will be greater when the test results are less accurate. "The advantage of large market scale is that the transaction has liquidity, market power or welfare. Therefore, as a spot exchange, I hope that the larger the whole partition, the better." He said that the market design of the entire European spot exchange is accepted by most European countries. The European spot exchange is not only an exchange operator, but also turns this operation into a service to provide market operation services, market coupling services and market expansion services to other entities