These markets enable energy producers, traders and consumers to meet their energy needs in real time while ensuring flexibility and efficiency.
Day-ahead
The day-ahead electricity market is a trading market on which energy is traded for the next day, i.e. the "day ahead". Participants have the opportunity to submit their electricity bids or requests for delivery on the next day. An auction takes place on the day-ahead market, where energy producers submit their bids for the amount of energy and the price at which they are prepared to supply electricity the next day. These bids are collected and the market price is determined on the basis of supply and demand.
The day-ahead is therefore important for energy planning and procurement. Energy suppliers and traders use it to organize their electricity supplies in advance and ensure that the energy supply meets consumer demand.
At the same time, risk management is taking place. Energy producers and traders use this market to hedge against price fluctuations. By concluding contracts at fixed prices, they can estimate their profits and losses.
Intraday
In contrast to day-ahead, intraday refers to trading within the same day, i.e. "during the day" (German for "intraday"). The intraday market therefore enables energy to be traded in real time. Participants can continuously adjust their energy supply and demand in order to react to unexpected fluctuations in demand or supply.
Intraday is also important for the integration of renewable energies, as the production of these energy sources depends on the weather and is therefore very volatile. The predictability of generation is only good shortly before fulfillment. The forecast error must therefore be compensated for at short notice. Energy producers can feed surplus energy into the grid on the intraday or buy additional energy when production is low.
Trading of flexibilities
Both markets - the day-ahead and intraday electricity markets - are essential components of today's energy trading. They enable efficient and flexible coordination of supply and demand as well as the integration of renewables into the electricity grid. Ultimately, ESFORIN helps to achieve the delicate balance between security of supply and the integration of renewables through algorithmic and AI-supported trading of electricity flexibility on the intraday and day-ahead markets. Together, we are enabling the expansion of renewables while reducing energy costs and CO2.
