These markets enable energy producers, traders and consumers to meet their energy needs in real time while ensuring flexibility and efficiency.
The day-ahead power market is a trading market where energy is traded for the next day, i.e. the "day before". Participants have the opportunity to submit their offers or demands for delivery the next day. In the day-ahead market, an auction takes place where energy producers submit their bids for the amount of energy and the price at which they are willing to deliver power the next day. These bids are collected and the market price is determined based on supply and demand.
Therefore, day-ahead is important in energy planning and procurement. Energy suppliers and traders use it to organise their power supplies in advance and ensure that the energy supply meets consumer demand.
At the same time, risk management takes 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.
In contrast to day-ahead, intraday refers to trading within the same day. The intraday market thus 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 is weather-dependent and thus very volatile. The predictability of generation is only good shortly before fulfilment. Compensation for the forecast error must therefore be made in the short term. Power producers can feed surplus energy into the grid on intraday or buy additional energy when production is low.
Trading of flexibilities
Both markets - the day-ahead and the intraday power market - are essential components of today's energy trading. They enable efficient and flexible matching of supply and demand as well as the integration of renewables into the power grid. Ultimately, ESFORIN helps to strike the delicate balance between security of supply and integration of renewables through the algorithm and AI-supported trading of electricity flexibility on the intraday and day-ahead. Together, we enable the expansion of renewables while reducing energy costs and CO2.