Elbas is an intraday market for trading power operated by Nord Pool Spot. Covering the Nordic region, Germany and Estonia, Elbas supplements Elspot and helps secure the necessary balance between supply and demand in the power market for Northern Europe.
The majority of the volume handled by Nord Pool Spot is traded on the day-ahead market. For the most part, the balance between supply and demand is secured here. However, incidents may take place between the closing of Elspot at noon CET and delivery the next day. A nuclear power plant may stop operating in Sweden, or strong winds may cause higher power generation than planned at wind turbine plants in Germany. At Elbas, buyers and sellers can trade volumes close to real time to bring the market back in balance.
Trading close to real time
At 14:00 CET, capacities available for Elbas trading are published. Elbas is a continuous market, and trading takes place every day around the clock until one hour before delivery. Prices are set based on a first-come, first-served principle, where best prices come first – highest buy price and lowest sell price.
Increasingly important
The intraday market is becoming increasingly important as more wind power enters the grid. Wind power is unpredictable by nature, and imbalances between day-ahead contracts and produced volume often need to be offset. Elbas will play a key role in the development of intraday power trading in Europe. From 2006 to 2009, total wind power installations in Europe grew by 36 percent to reach 76 GW. Future prospects indicate exponential growth, reaching 1.900 GW installed wind capacity worldwide in 2020 (Source: World Wind Energy Association). This type of market can be a key enabler to increase the share of renewable energy in the energy mix.