Introduction of an Intraday market on the Italian borders for the

year 2011

Electricity Regional Initiative – CSE RegionMilan, 16/11/2010

As stated in the last Italian Energy reform a National Intraday Market (ID Market) will go live on 1 January 2011. The proposal for the new National Intraday Market has been put in consultation at the beginning of September 2010.

The features of the ID Market, that are in line with the Italian market design, are as follows: Implicit auction Market splitting with a zonal structure Hourly products

The ID market will be based* on 2 sessions in the day D – in each session the tradable hours correspond to 3/4 hours after the gate closure ‘till the end of the day

* The timetable of the market is still under discussion

Internal Intraday Market in Italy

Proposal for the allocation of the XBID capacity on the Italian Borders

Requirements Main RulesTo be compliant with the EC regulation

A market based mechanism

Feasible as soon as possible (year 2011)

Transitory solution.Is not an obstacle for future developments of the market that are in line with the AHAG target model. Definition of the features in line with the European model under discussion can be developed in parallel to the transitory solution

ATC defined jointly per each border

Explicit auctions single run on all Italian borders on both directions. The tradable hours will be the same of the Italian ID marketUsage of capacity similar to daily PTRs assigned on D-1.A to A nomination

Proposal for the allocation of the XBID capacity on the Italian Borders – Potential timetable

Market Rules XBID Capacity rules similar to the one we have today (ARs)

The existing IT tool can be used to perform XB Intraday auctions

Auctions performed either by TSOs or CASC

Tradable Hours The tradable hours will be the same of the Italian ID market. In a first phase 12-24, 16-

24

It will be investigated the feasibility to increase the number of tradable hours during the

2011

XB Intraday Capacity Calculation A procedure agreed among TSOs to define XB Capacity to allocate on intraday is needed

UIOLI principle for daily PTRs assigned on D-1

ATC for XBID Capacity smaller at the beginning

Usage of XB Intraday Capacity A to A nomination

XB Intraday Market on Italian Borders – further details