Energy market operators propose transitioning European intraday auctions to a more precise calculation of available capacity between states.
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The three intraday auctions are set to use allocation based on the physical flows of the network, so that cross-border electricity exchanges better reflect the system's limits. The proposal maintains a maximum interruption duration of 40 minutes for continuous trading, indicates the fourth quarter of 2027 for launch, and is to be decided by ACER by January 21, 2027.
Designated operators of electricity markets in Europe have proposed that the three common intraday auctions use flow-based capacity allocation, a system that takes into account in more detail the effect of transactions on the interconnected network. The modification requires adjusting the intervals during which cross-border continuous trading is suspended, but the proposal maintains a total interruption of no more than 40 minutes under normal conditions and establishes the fourth quarter of 2027 as the anticipated deadline for technical preparation.
In short
1. The three European intraday auctions complement continuous trading and simultaneously establish prices, volumes, and electricity exchanges between bidding zones for the remaining periods until delivery.
2. Operators propose replacing the current approach based on available net capacities with a flow-based calculation in regions where this method is used for the electricity network.
3. Cross-border continuous trading may be suspended for the preparation and execution of an auction, but the total interval cannot exceed 40 minutes under normal conditions.
4. After the publication of the auction results, there must remain at least 30 minutes for continuous cross-border trading before the market closes for the respective delivery period.
5. ACER received the proposal on July 21, 2026, collects observations until August 31, and estimates that it will adopt a decision by January 21, 2027. The anticipated date for technical launch is the fourth quarter of 2027.
The intraday market allows participants to buy and sell electricity after the market closes for the next day and closer to the delivery moment. It is used to correct positions when forecasts regarding production and consumption change.
A company may find, for example, that a wind farm will produce less than estimated a day before or that an industrial consumer will need more electricity. The intraday market allows them to buy or sell the difference before the imbalance needs to be managed by the transmission operator.
European transactions are carried out through two complementary mechanisms. The first is continuous trading, in which orders are entered and executed successively based on price and the time of their submission.
A buy offer is associated with the most advantageous available sell offer. When two orders from different states or zones can be matched, the system checks whether there is still sufficient capacity for the transfer of electricity across the border.
The second mechanism is represented by the three pan-European intraday auctions. Instead of executing orders one by one, the auction collects them until a set deadline and simultaneously calculates the results for all participating zones.
The algorithm determines how many orders can be accepted, the price for each bidding zone, the traded volume, and the scheduled exchanges between zones. The objective is to achieve the highest possible economic surplus within the limits of the network's capacity and security requirements.
The three auctions were introduced across Europe on June 13, 2024. They aim to assign a value to cross-border capacity and reflect situations where it becomes insufficient in relation to the demand of participants.
Currently, the auctions mainly use a method based on the net transfer capacity and allocation constraints. For each border or group of borders, a quantity of electricity that can be exchanged under safe conditions is communicated.
The flow-based method analyzes in more detail the effect of transactions on the elements of the network. Electricity does not only flow along the indicated commercial route between two states, but is physically distributed through the interconnected network, depending on the configuration and conditions of the system.
A transaction between two zones can also load lines located in other parts of the region. The flow-based calculation tracks these effects and allows the establishment of combinations of exchanges compatible with the limits of the network's critical elements.
Market operators and transmission system operators believe that the method can enable more efficient cross-border exchanges, a greater economic surplus, and maintain the safe operation of the system. However, the proposal does not guarantee an increase in available capacity at every moment or at every border.
In certain situations, more precise modeling can identify additional capacity that would not have been available through the simpler method. In other situations, it may show that some combinations of transactions would overburden certain components of the network and need to be limited.
The introduction of the method modifies the technical processes carried out around each auction. Cross-border continuous trading must be temporarily suspended to avoid allocating the same capacity both through continuous orders and through the auction.
Before the auction, the available capacity must be prepared and transmitted to the coupling system. After establishing the results, operators must verify the solution and recalculate the capacity that can be made available again for continuous trading.
Flow-based allocation also requires an additional stage after the auction. The resulting capacities must be transformed into usable values by the continuous trading system, so that it can resume exchanges without taking the network out of the safe operating range.
The initial proposal described separately the intervals before and after the bid submission deadline. Participants in the public consultation warned that the wording could be interpreted as allowing a total interruption of 45 minutes.
Operators have simplified the text and now propose a single ceiling. Under normal conditions, the total suspension of cross-border allocation through continuous trading cannot exceed 40 minutes.
The document does not set an exact duration for each stage within this interval in the methodology. The times for preparing the auction, calculation, verification, and resuming trading will be established through operational procedures and communicated to participants.
This solution gives operators the freedom to organize the stages in parallel when possible. Consultation participants have requested the broader use of simultaneous processes so that the introduction of flow-based calculation does not extend the period during which the continuous market is unavailable.
Market operators and network operators received two substantial responses in the consultation held between May 13 and June 12, 2026. Both supported the transition to the flow-based method but requested that interruptions remain short, predictable, and transparent.
One of the respondents opposed any extension. The final proposal maintains the 40-minute ceiling and replaces the rigid description of the stages with an applicable limit for the entire process.
It will also be maintained the obligation that, after the publication of the auction results, participants benefit from at least 30 minutes of continuous cross-border trading for the relevant delivery period.
Operators had analyzed the modification of this requirement but abandoned it after consultation. The 30-minute interval allows participants to adjust their positions based on information that arises after the auction.
The results of each auction must be published within a maximum of 20 minutes from the closing of the bidding period under normal conditions. These include prices, net positions, accepted volumes, and scheduled exchanges between bidding zones.
The proposal separately modifies the normal deadline for publishing the market result for the next day. Operators request moving it to 13:05 Central European Time.
The change is related to the transition of the European market to 15-minute trading intervals. A larger number of intervals and results increases the volume of data and the complexity of the calculations performed by the algorithm.
The methodology currently allows the publication of market results for the next day until 13:05 under normal conditions and, in any case, no later than 15:30 when issues arise that require additional procedures.
Operators also propose establishing a concrete deadline for using the flow-based method in intraday auctions. Technical preparation for launch is anticipated in the fourth quarter of 2027.
This date does not yet represent a definitive and unconditional launch. The document specifies that the preparation for the entry into operation depends on coordination with market participants and meeting operational requirements.
The change must be implemented in regions where cross-border capacity is calculated using the flow-based method. The exact configurations and regional schedule may depend on the preparation of transmission operators, exchanges, and IT systems.
For continuous intraday trading, operators do not yet propose a calendar for implementing the flow-based method. They request the continuation of research and development to verify technical feasibility and prepare a separate plan if the solution proves feasible.
The difference is important because the auctions calculate a common result at a specific moment, while the continuous market receives, compares, and executes orders throughout the session. The permanent adaptation of flow-based capacity to this process may require a different technical solution.
The methodology regulates the algorithms that support the coupling of markets for the next day and intraday. They allow participants from multiple states to trade within a common calculation, instead of having completely separate auctions and capacity allocations at each border.
Orders are processed anonymously and without identifying the participant or market operator who submitted them. The algorithm must apply the same rules to all offers and respect the limits of the network communicated by transmission operators.
For the next day market and intraday auctions, the algorithm first seeks a solution that respects all restrictions. Subsequently, it examines additional solutions to increase the economic surplus until it finds the optimal result or reaches the time limit.
If two solutions produce the same economic surplus, the one that allows the trading of the largest volume of electricity is chosen. The algorithm must provide a result within the established intervals, even if the complexity of the calculation does not allow examining all theoretically possible combinations.
The increasing number of products, bidding zones, operators, and orders can put pressure on the performance of the algorithm. The methodology provides for monitoring calculation time, capacity for expansion, and stability of results.
Operators must publish annual reports on performance and incidents and prepare a roadmap for future changes. ACER and national authorities may request the data used, the results of simulations, and the auditing of the source code by designated third parties, under conditions of confidentiality.
The current proposal does not directly modify electricity prices and does not set minimum or maximum values for the market. It changes the technical rules by which offers and cross-border capacity are entered into the common calculation.
The effect on prices will depend on the conditions in each auction, the availability of production, the level of consumption, the capacity of the network, and the position of offers. More efficient use of interconnections can bring prices closer between zones when there is sufficient capacity, without eliminating the differences caused by congestion.
The flow-based method does not eliminate the physical limits of the network and does not guarantee that the cheapest energy can always reach all states. Its role is to more accurately describe the effect of possible exchanges and to use the network without compromising safety.
ACER has not yet approved the modifications. The agency received the joint proposal from the designated market operators on July 21, 2026, and must evaluate whether it meets European objectives regarding competition, efficient use of infrastructure, correct price formation, and operational safety.
Stakeholders can submit observations to the agency until August 31, 2026. ACER estimates that it will make a decision on the methodology by January 21, 2027.
The decision may approve the text, modify it, or request adjustments. Technical implementation will subsequently require coordination among energy market operators, transmission system operators, and participants.
In Romania, the methodology applies to the Electricity and Natural Gas Market Operator, OPCOM, and the Romanian Commodity Exchange, along with other designated exchanges in Europe. Their participation involves adapting common systems and procedures when the changes are approved and implemented.
The three intraday auctions were introduced to establish a value for cross-border capacity closer to the moment of electricity delivery. They operate within the European intraday coupling mechanism and complement the continuous market, which remains open between auctions.
The current methodology of the algorithms was initially approved by ACER in 2018 and modified in 2020 and 2024. The new proposal mainly concerns the preparation of intraday auctions for flow-based allocation, the implementation schedule, and the operational deadlines necessary for the functioning of coupled markets.
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