Intraday market

Inhaltsverzeichnis

What is the intraday market?

The intraday market is a central segment of the spot market and enables the short-term purchase and sale of electricity within the same day. In contrast to the day-ahead market, where electricity is traded one day in advance, the intraday market allows adjustments right up to shortly before actual delivery. This enables utilities, power traders and industrial companies to respond flexibly to short-notice changes in supply and demand.

Intraday trading is an important tool for integrating renewable energy into the power system, as it can compensate for fluctuations in wind and solar generation in near real time.

How is electricity traded on the intraday market?

Electricity on the intraday market is traded continuously – in 15-minute intervals, hourly blocks or larger time windows. Market participants can constantly update their forecasts and balance deviations between planned and actual consumption or generation.

  • Purchase: Industrial companies can buy additional electricity at short notice when their own consumption is higher than expected.
  • Sale: Surplus self-generation, for example from photovoltaics or wind power, can be fed into the grid flexibly.

Trading takes place via the power exchanges, in Europe primarily via EPEX SPOT, which operates the central intraday market for Germany and other countries. For industrial companies without direct exchange access, direct marketers or energy traders usually take over this process.

How does intraday trading work?

Intraday trading consists of several steps:

  1. Forecasting: Industrial companies and utilities create consumption and generation forecasts.
  2. Adjustment: In case of deviations (e.g. caused by weather changes or production fluctuations), the difference is balanced via the intraday market.
  3. Continuous trading: Electricity can be traded up to 5 minutes before delivery starts.
  4. Delivery: The traded electricity is delivered and balanced within the booked time window.

Trading in 15-minute intervals is particularly relevant, as this is where short-term flexibility can best be represented.

Advantages of the intraday market

  • High flexibility: Ability to react to unexpected changes in production or consumption in real time
  • Cost optimisation: Taking advantage of favourable price phases; reducing electricity costs through load management
  • Revenue potential: Selling surplus self-generation on the spot market
  • Grid stability: Through active intraday trading, companies contribute to overall system stability

Disadvantages of the intraday market

  • Complexity: Requires real-time monitoring, forecasting and fast decision-making
  • Price volatility: Strong fluctuations can create opportunities but also risks
  • Technical requirements: Automated smart energy management and trading platforms are essential
  • Expertise: Companies need either internal know-how or support from specialised partners

Why intraday trading is becoming increasingly important

Intraday trading is a key element of modern power markets. For industrial companies, it creates opportunities to reduce energy costs through flexible load control while supporting the integration of renewable energy.

Combined with day-ahead trading and smart energy management, companies can optimise their procurement costs, market their own generation and secure a long-term competitive position.

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