SDAC geographical scope and extensions

2014

  • February: launch of the North-Western Europe (NWE) Price Coupling operating under a common day-ahead power price calculation using the PCR solution. The same solution was also used at the same time in the SWE region in a common synchronised mode. The first go-live of this coupling included the following countries: Belgium, Denmark, Estonia, Finland, France, Germany/Austria, Great Britain, Latvia, Lithuania, Luxembourg, the Netherlands, Norway, Poland (via the SwePol Link), Sweden, Portugal and Spain.

  • May: full coupling NWE and SWE (MRC coupling)

  • November: the 4M MC went live using the PCR solution. The following countries are part of the 4M MC: Czech Republic, Hungary, Romania and Slovakia.

2015

  • February: Italy and Slovenia coupled with MRC

2016

  • January: Bulgaria joined MRC (isolated mode)

  • February: Croatia joined MRC (isolated mode)

2018

  • June: Croatia coupled with MRC

  • October: the Single Electricity Market on the island of Ireland coupled with MRC, split of the German-Austrian bidding zone into two separate ones

2020

  • December: Greece coupled with SDAC (MRC coupling)

2021

  • January: EU-GB interconnectors and GB bidding zones exiting SDAC (MRC coupling)

  • May: Bulgaria coupled with SDAC (MRC coupling)

  • June: 4M MC and the MRC coupled via the borders PL-DE, PL-CZ, PL-SK, CZ-DE, CZ-AT, and HU-AT
  • October: inclusion of the BG-RO border in the SDAC coupling

Roadmap

  • In the first half of 2022, flow-based implicit allocation will be implemented for the Core Capacity Calculation Region in the framework of the Core Flow-Based Market Coupling Project being the target solution required by regulation.
  • With the go-live of the Core flow-based project, the Croatian-Hungarian border will be included in the SDAC coupling.

SDAC parties/countries involved and their status


The parties involved in SDAC are:

Transmission System Operators (TSOs):

50Hertz Transmission, ADMIE, Amprion, APG, AST, CEPS, Creos, EirGrid, Elering, ELES, ELIA, Energinet, ESO, Fingrid, HOPS, Litgrid, MAVIR, PSE, REE, REN, RTE, SEPS, SONI, Statnett, Svenska Kraftnät, TenneT DE, TenneT NL, Terna, Transelectrica, and TransnetBW.

Nominated Electricity Market Operators (NEMOs):

BSP, CROPEX, SEMOpx (EirGrid and SONI), EPEX, EXAA, GME, HEnEx, HUPX, IBEX, Nasdaq, Nord Pool, OMIE, OKTE, OPCOM, OTE, and TGE.


Governance structure

The governance of the SDAC consists of three layers:

  • Joint NEMOs and TSOs: governed by the Single Day-Ahead Coupling Operations Agreement (DAOA);

  • Only NEMOs: governed by the All NEMO Day Ahead Operation Agreement (ANDOA);

  • Only TSOs: governed by the TSO Cooperation Agreement for Single Day-Ahead Coupling (TCDA).

Therefore, the governance structure is headed by a Joint Steering Committee (JSC) that includes representatives of all the parties involved. The JSC activities are supported by horizontal groups which address the legal, financial and communication aspects of the coupling. Furthermore, there are two joint groups which deal with the following operational aspects: Market & System Design, Procedures and Operation.


Joint NEMOs and TSOs governance structure



What does SDAC do?

Day-ahead market coupling requires processing input from all involved NEMOs and TSOs – essentially bids and offers and network capacities and constraints – matching them by operating one single algorithm, and lastly validating and sending outputs, such as matched trades, clearing prices, and scheduled exchanges, to NEMOs and TSOs. These procedures occur within precise and tight timelines, while ensuring optimal economic solutions, high performance, and robustness.

Read More

The SDAC makes use of a common price coupling algorithm, called PCR EUPHEMIA, to calculate electricity prices across Europe and to implicitly allocate auction-based cross-border capacity. 

Input data to PCR EUPHEMIA are the network capacities and constraints provided by the TSOs and the bids and offers provided by the NEMOs.

PCR EUPHEMIA matches energy demand and supply for 24 hours simultaneously. The algorithm runs a combinatorial optimization process based on (i) the modelling of the matching problem (ii) the implementation of dedicated branch-and-bound strategies and (iii) the utilization of a standard optimization solver. The code of the algorithm uses Java and is interfaced with the matching system via an Oracle database.

This process maximises social welfare (consumer surplus, supplier surplus and congestion rent) and takes into account price limits of orders and network constraints. The algorithm is designed to regard a large variety of orders and network features as well as local market rules.

Output data are clearing prices, matched trades, scheduled exchanges, and the net position of bidding areas.

Since its launch PCR EUPHEMIA has been continuously developed further. The most recent major development has been the integration of multi-NEMO requirements. With the latest release, smaller changes like shadow prices for maximum import/export allocation constraints and the calculation of aggregated curves have been implemented.



Market information

Statistics

  • 98,6% of EU consumption is coupled

  • 1.530 TWh / year coupled in one market solution

  • 200 M€ average daily value of matched trades

  • 17 minutes to solve a large and complex optimization problem

For graphical overviews on SDAC statistics click here


Future Development

PCR EUPHEMIA is largely compliant with CACM requirements and the final target is to complete SDAC and ensure full CACM compliance. Further, PCR EUPHEMIA as an “existing solution” has been proposed in the context of Single Intraday Coupling for the execution of intraday auctions for the pricing of cross-border capacity (IDAs). Notwithstanding the important achievements of the PCR EUPHEMIA, cycles of Research and Development (R&D) are being executed in order to support further extensions of the market coupling, new market designs and higher quality of performance, such as:

  • Geographical extensions and market growth

  • Switch from NTC to flow based capacity calculation

  • 15 min Market Time Unit and cross matching

  • CACM requirements to the Algorithm (adequate performance, scalability and repeatability)

  • New NEMOs’ and new TSOs’ requirements

  • Topology changes

The R&D program called Euphemia Lab is a joint approach of NEMOs and TSOs with periodic reporting to institutions and stakeholders. The R&D program consists of researching a list of potential solutions to improve the target KPIs. Priority is given to improve CACM requirements and the most problematic root cause of the numerical problems in EUPHEMIA. It is to be noted that research on a topic takes at least 6 months and subsequent integration into production takes at least one year.


Resources Available

Press Releases:

  

Information notes:




 Market reports

·       CACM Annual Reports:


·       CACM Cost Reports


·       ENTSO-E Market Report



Joint Steering Committee meeting minutes


Publication of contracts according to article 20.7 of the Algorithm Methodology 

According to article 20.7 of the Algorithm Methodology as approved by ACER all NEMOs shall in coordination with TSOs publish, by 1 September 2020, and then continuously update the relevant parts of the following documents:

a.           operational contracts;

b.           operational procedures;

c.           change control procedures

d.           monitoring procedures;

e.           fallback procedures; and

f.            back-up procedures.


These documents are published in accordance with article 20.7 of the Algorithm Methodology for transparency purposes. Any consultation or use of these documents is at your own risk and responsibility and the parties to the SDAC cooperation cannot be held liable for any damage incurred as a result of the use of these documents. Furthermore, these documents can only be used or quoted provided prior written consent is obtained of the parties to the SDAC cooperation. No rights or obligations can be derived from these documents. The publication of these documents does not affect any (intellectual) property right pertaining to these documents or to the information contained therein. The publication of these documents does not preclude the rights of the parties to the SDAC cooperation to amend, replace or suppress the documents.


Please note the following:

For reasons of confidentiality certain parts of the content of the documents have been blackened out or have not been published (e.g. Annex 5 of the DAOA).

SDAC Joint Documentation

Day-Ahead Operational Agreement (DAOA)Main body
Annex 1: Definition list
Annex 2: SDAC Operational Procedures – see separate list below
Annex 3: Change Control Procedures
Annex 4: Rules of Internal Order
Annex 6: Cost sharing, monitoring and settlement
Annex 7: Technical Readiness Definition
Annex 8: Simulation Facility Services 
Annex 9: Accession Form
Annex 10: List of Parties and their status
Annex 2: SDAC Operational ProceduresSDAC_01 - CZC and Allocation Constraints Submission
SDAC_02 - Final Confirmation of the Results
SDAC_FAL_01 Incident Management
SDAC_FAL_02 - Full Decoupling
SDAC_FAL_03 - Partial Coupling
SDAC_NOR_01 - CZCs and Allocation Constraints Submission
SDAC_NOR_02 - Final Confirmation of the Results
SDAC_NOR_03 - Market Coupling Results and Scheduled Exchanges Transfer
SDAC_NOR_04 - Trading Confirmation and Scheduled Exchanges Notification
SDAC_OTH_01 - SDAC Procedures Reading Instructions
SDAC_OTH_02 - Internal and External Communications
SDAC_OTH_04 - Norwegian Bidding AreaChange
SDAC_OTH_06 - Modification of Maximum Clearing Price
SDAC_SPE_01 - Impact of Second Auctions
SDAC_SPE_02 - Impact of price limits in Nordic-Baltic reached


Algorithm monitoring procedure, according to Algorithm methodology defined in ACER decision 04/2020



SDAC NEMO Only Documentation


All NEMO Day-ahead Operational Agreement (ANDOA)

Main body

Annex 1: DA MCO Function Assets and Individual Assets' list; list of agreements in force with Third Party Service Provider of the DA MCO Function Assets at the time of the entering into force of the ANDOA

Annex 2: High level functional architecture

Annex 3: Procurement approach

Annex 4: Change Control Procedures

Annex 5: Rules of Internal Order

Annex 7: Cost Sharing Monitoring and Settlement 

Annex 8: Standard Power of Attorney for Third Party services

Annex 13: List of MRC and 4MMC Operational NEMO and Non-Operational NEMO at the time of entering into force of this ANDOA

NEMO Day-Ahead Procedures

NEMO DA Procedures - ANDOA_BUP_01-Configuration Synchronization_redacted.pdf

NEMO DA Procedures - ANDOA_BUP_02-Network Data Sending and Receiving_redacted.pdf

NEMO DA Procedures - ANDOA_BUP_03-Order Data Sending and Receiving_redacted.pdf

NEMO DA Procedures - ANDOA_BUP_04-Calculation Process_redacted.pdf

NEMO DA Procedures - ANDOA_BUP_05-Results Sharing  and Receiving_redacted.pdf

NEMO DA Procedures - ANDOA_BUP_06-Preliminary Confirmation of the Results_redacted.pdf

NEMO DA Procedures - ANDOA_BUP_07-Final Confirmation of the Results_redacted.pdf

NEMO DA Procedures - ANDOA_BUP_08-Daily Report and Euphemia Session Dump

NEMO DA Procedures – ANDOA-EXC_08-Maximum Clearing Price Settlement management

NEMO DA Procedures - ANDOA_NOR_01-Configuration Synchronization

NEMO DA Procedures - ANDOA_NOR_02-Network Data Sending and Receiving

NEMO DA Procedures - ANDOA_NOR_03-Order Data Sending and Receiving

NEMO DA Procedures - ANDOA_NOR_04-Calculation Process

NEMO DA Procedures - ANDOA_NOR_05-Results Sharing and Receiving

NEMO DA Procedures - ANDOA_NOR_06-Preliminary Confirmation of the Results

NEMO DA Procedures - ANDOA_NOR_07-Final Confirmation of the Results

NEMO DA Procedures - ANDOA_NOR_08-Daily Report and Euphemia Session Dump

NEMO DA Procedures - ANDOA_NOR_09-Time to first solution gathering

NEMO DA Procedures - ANDOA_OPE_04-Internal and External Communications