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A “Regional Energy Hub” for a Global Transition to a Low-carbon Economy

Originally published in APEx Newsletter Volume XXII – September 2022


The global transition to a low-carbon energy economy needs to capture the flexibility of technological developments (from solar PV development and battery storage to the deployment of small modular reactors) but also the changes in the social, environmental, and governmental requirements for a sustainable energy future. We capture this transition from a broad perspective that includes geopolitical, economic, environmental, and financial parameters of a newly-defined concept known as the Regional Energy Hub (REH).

The global transition to a low-carbon energy economy needs to capture the…

How to Best Price Day-ahead Markets?

Originally published in APEx Newsletter Volume XXI – June 2022


Since the early waves of electricity market liberalizations, pricing in day-ahead markets has raised challenging questions rooted in economics and optimization theory. In general, finding uniform paid-as-cleared market prices, i.e. clearing prices that uniformly apply to bids such that all price-compatible bids are accepted and price-incompatible bids are rejected, is mathematically impossible in day-ahead (or more generally closed-gate) electricity markets, due to the presence of indivisibility constraints.

We discuss here how that pricing challenge is addressed currently in the EU Single Day-Ahead Coupling (SDAC), in…

Record electricity imbalance prices in GB – what does it mean for the future?

Originally published in APEx Newsletter Volume XVII – June 2021

Last year a new record was set for Britain’s longest ever ‘coal-free’ electricity generation period, totalling 67 days between April and June. It is an example of the progress the sector needs to make to meet the UK Government’s net zero commitment. As the manager of the Balancing and Settlement Code, one of the key commercial arrangements for companies operating in the GB energy market, Elexon fully supports this commitment.

Transitioning to a decentralised system with much more intermittent generation results in…

Competitive Wholesale Electricity Market to Commence in Pakistan by April 2022

Originally published in APEx Newsletter Volume XVII – June 2021.

The Pakistani Power Market today is based on Single Buyer Plus Model with an installed generation capacity of 40,000 MW that will cross 50,000 MW mark in next two years. Projections of dispatch mix and marginal prices from 2021 to 2025 are depicted in Figure 1. It is important to highlight that Power Sector was de-bundled from a VIU back in 1998, Generation, Transmission and Distribution segments were separated, and independent regulatory Authority (NEPRA) was created. Today, CPPA (the single buyer and market operator) has long…

Nodal Exchange

Originally published in APEx Newsletter Volume XV – September 2020

Nodal Exchange is a derivatives exchange providing price, credit and liquidity risk management to participants in the North American commodity markets. All transactions on Nodal Exchange are cleared through its clearing house, Nodal Clear, using a portfolio margining approach that provides participants significant risk management and capital efficiency advantages. Nodal Exchange is a leader in innovation, having introduced the world’s largest set of electric power locational (nodal) futures contracts. Nodal Exchange currently offers over 1,000 contracts on hundreds of unique locations, providing the most effective basis…


Originally published in APEx Newsletter Volume XIV – June 2020.

GCCIA: A robust setup for Energy stability and sharing Capacity and Reserve for GCC countries.

In line with the shared vision and goals of the Gulf Cooperation Council (GCC), the GCC Interconnection Authority (GCCIA) was established in 2001 to interconnect the national grids of the six GCC countries namely Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates. The construction of the super-grid began in late 2005 and the operations commenced in late 2009, with the primary objectives being sharing of installed capacity resources and…

Indian Energy Exchange Energy Markets to Lead Transformation in the New Decade

Originally published in APEx Newsletter Volume XXI – June 2022.

Indian Energy Exchange is India’s first and largest power exchange offering participants an automated platform to trade in Electricity, Renewable Energy Certificates and Energy Saving Certificates. The exchange enables competitive and efficient price discovery, increases the accessibility and transparency of the power market and enhances the speed and efficiency of trade execution. The Exchange is certified for quality management, Information Security Management and environment management and is a listed Company on the Indian stock exchanges – NSE and BSE.

Working relentlessly over the last 12 years, IEX…

Another Successful APEx Conference in the Bag!

Originally published in APEx Newsletter Volume XII – December 2019.

The 2019 edition of the Association of Power Exchanges (APEx) annual conference welcomed more than 100 delegates from over 45 international organizations to Toronto. The conference ran from October 9 to 11 and was held at the St. Regis Hotel, in the centre of Toronto’s financial and cultural district.

This year’s conference saw market and system operator participants come from all parts of the world, including from one of the newest APEx members, the Independent Bulgarian Energy Exchange.

“The APEx conference provides a unique opportunity for…

IESO: A Market in Transition

Originally published in APEx Newsletter Volume XI – September 2019.

Ontario has achieved a major milestone in its Market Renewal program – the completion of three Highlevel Designs that lay the foundation for a more dynamic and efficient energy market. By 2023, Ontario will have replaced its uniform pricing system with locational marginal pricing, while also implementing a Day-Ahead Market and Enhanced Real-time Unit Commitment.

This renewed market will not only deliver significant levels of market efficiency and customer savings, it will also allow us to better address the changes that we are all experiencing:…

CCEE: The Brazilian Energy Market Operator

Originally published in APEx Newsletter Volume VIII – December 2018.

With a population of 207 million people and a territory as large as the European continent, Brazil’s large dimensions and diversity create excellent opportunities that involve big challenges for planning, operating and trading electric energy. Ensuring supply reliability, security, quality of service and cost optimization are the main aspects that drive institutions and agents of the Brazilian market.

Present for 20 years in this complex and riveting electric sector framework, the Chamber of Commerce of Electric Energy – CCEE plays a fundamental role in operating and…