CONTRIBUTION - Market

The capitals held by PSE allow it to implement its business strategy and create value for stakeholders.

Area of value creation

I. We are actively involved in shaping market mechanisms as part of building a European electricity market, taking into account the conditions of the domestic electricity market. Read more

II. We make efforts to develop favorable market conditions to ensure effective and safe operation of the National Power System as an element of the European market. Read more

III. We support the active participation of consumers in market mechanisms. Read more

I. We are actively involved in shaping market mechanisms as part of building a European electricity market, taking into account the conditions of the domestic electricity market.

  • , in particular in the scope of creation of the following:
    • Flow-Based Market Coupling for day-ahead and intra-day markets,
    • cross-border balancing market.
  • We are working to strengthen the coordination of cross-border exchange in Europe, including in terms of reducing unscheduled flows through the NPS.

II. We make efforts to develop favorable market conditions to ensure effective and safe operation of the National Power System as an element of the European market.

  • PSE is involved in the process of building the electricity market in Europe, in particular in the scope of the following:
    • .
  • We are implementing further segments of the target European electricity market model on the borders of the NPS (the Target Model).
  • We are effectively balancing the power system, particularly with respect to the following:
    • fault-free execution of the balancing market processes,
    • .

III. We support the active participation of consumers in market mechanism

  • .
  • We develop mechanisms for active consumer participation in the electricity market.
  • We support various forms of market functioning of consumers, such as prosumers, aggregators and energy clusters.

Our contribution

  • Since 8 June, 2022, the CORE region has had a single electricity market coupling mechanism in place, using a method that optimises available transmission capacity based on physical electricity distribution (flow-based). This will make electricity trading more efficient, and also responding to the challenges of the energy transition. Sixteen Transmission System Operators and ten power exchanges were involved in the preparations for the launch of the CORE Flow-Based Market Coupling. The CORE region covers the market areas of Austria, Belgium, the Czech Republic, Croatia, France, Netherlands, Luxembourg, Germany, Poland, Romania, Slovakia, Slovenia and Hungary.
  • We are working on the development of SIDC and SDAC - key initiatives include:
    • in the SDAC area – implementation of 15-minute market products (Day-Ahead 15min MTU);
    • in the SIDC area:
      i.) introduction of an Intraday Auctions (IDA) mode, whereby prices will be set for individual market areas as the basis for determining the congestion rent for each border,
      ii.) implementation of 15-minute market products (Intraday 15min MTU).iii.) implementation of the FBA method as the target solution for the SIDC.
      iii.) implementation of the FBA method as the target solution for the SIDC.
  • PSE representatives are involved in the work of European institutions and agencies:
    • European Network of Transmission System Operators for Electricity (ENTSO-E). ENTSO-E consists of 39 transmission system operators from 35 countries. The most important elements of the ENTSO-E working structure are as follows:
      • Market Committee,
      • System Development Committee,
      • System Operations Committee,
      • Research, Development & Innovation Committee,
      • Information and Communication Technologies Committee,
      • Legal and Regulatory Group operating as a Committee.

        PSE is represented in each of them.
      • European Commission. Cooperation on the identification of critical infrastructure in accordance with Council Directive 2008/114/EC of December 8, 2008 on the identification and designation of European critical infrastructures and the assessment of the need to improve their protection.
      • European Parliament, ACER. The cooperation concerns the coordination of work in the Council of the European Union.
  • Over 100 representatives of our company actively participate in the works of ENTSO-E.
  • Making transmission capacity available by PSE in 2022:
    • in the annual auction,
    • in the monthly auction,
    • in the day-ahead market cross-border electricity exchange
    • in the intraday market cross-border electricity exchange
  • Conducting the Polish capacity market's seventh main auction in 2022, which included the 2027 delivery year. As with the main auction for the 2026 delivery year, only capacity market units meeting the carbon dioxide emission limit of 550 g/kWh were admitted also to the main auction for the 2027 delivery year.
  • Conducting additional auctions in the Polish capacity market, in 2022 for individual quarters of the 2023 delivery year
  • Number of borders covered by a market mechanism consistent with the European target model – five borders:
    • Poland ─ Sweden,
    • Poland ─ Lithuania,
    • Poland ─ Germany,
    • Poland ─ Czech Republic,
    • Poland ─ Slovakia.

    • Polish borders covered by the Single Day-Ahead Coupling (SDAC) mechanism: PL-CZ, PL-DE, PL-LT (LitPol Link), PL-SE (SwePol Link), PL-SK, of which PL-CZ, PL-DE, PL-SK borders are covered by the Core Flow-Based Market Coupling mechanism. The transmission capacity for the LitPol Link and SwePol Link borders is determined based on the NTC method. Polish borders covered by the Single Intraday Coupling (SIDC) mechanism: PL-CZ, PL-DE, PL-LT (LitPol Link), PL-SE (SwePol Link), PL-SK.

IRP service ─ the implementation of the capacity market from January 1, 2021 and other changes in the national electricity market, have necessitated the development and implementation of a new system service related to the reduction of electricity consumption by consumers in the NPS. This led to the creation of the Contingency Reduction of Power Consumption by Consumers Based on a Bidding Process (IRP), which replaced the previous DSR programmes. In the IRP, the volume of reduction volumes is not specified; the products and capacities become known to the TSO after the collection of sales proposals (offers) submitted by the service suppliers in response to the request. The service is entirely voluntary and flexible – the suppliers are not obligated to make a sales proposal in response to a request.

In 2022 PSE implemented a new contracting model for the contingency reduction of power consumption service for the period from March 25, 2022 to February 28, 2023. The IRP Supplier Qualification System., as it is referred to, enables efficient and effective verification of suppliers and contracting for the IRP service. Entities meeting the criteria for the service, as set out in the IRP Supplier Qualification System Regulations, can apply for a contract via the PSE Purchasing Platform. Applications were accepted on a rolling basis from March 25, 2022 to February 28, 2023. The duration of a contract could vary between the suppliers, depending on when the contract is signed – however, service provision could start no earlier than on April 1, 2022. All contracts were in force until March 31, 2023.

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