Training: Power – Day-ahead Auction (information)

Short description

Learn about the daily power auction in the day-ahead market.

Capacity

You act in the capacity of trading operations specialist at the auctioneer. This way, you have full insight in the orders placed by market participants. Market participants themselves only know the order(s) they have submitted themselves, not the orders of their competitors. After all, the auction concerns a “blind” auction. Next, anyone can see the market clearing price as it is made transparent quite fast after the auction has taken place and the results are confirmed.

Task

Your task is to analyse the aggregated curves so that you understand the resulting market clearing prices. These curves are the consequence of the orders submitted by the market participants, of which their electricity portfolios are shown, allowing you to analyse what their desires are to buy or sell (and for which volume and at what price). So, first start by looking at the asset and client portfolio per market participant and based thereon try to understand why they have placed what orders (buy/sell, volume, price).

Objective

The goal of this simulation is to understand what orders market participants are likely to submit (buy or sell, for what volume and at which maximum or minimum price level) and why they are doing so. The goal sis also to understand market dynamics of power spot markets and how the merit order plays a role, in combination with the demand curve.