Flow-based allocation has already transformed the European day-ahead market. The next step is its integration into the Single Intraday Coupling (SIDC), enabling a more efficient use of cross-zonal capacity closer to real time.
However, extending flow-based allocation to continuous intraday trading introduces considerable technical and operational complexity.
A pragmatic approach is therefore emerging: introducing flow-based allocation initially within Intraday Auctions (IDA). This allows stakeholders to unlock substantial efficiency gains while keeping implementation risks manageable.
Nominated Electricity Market Operators (NEMOs) and Transmission System Operators (TSOs) recently marked two years of IDAs based on Available Transfer Capacity (ATC). The next milestone is already in sight: the introduction of flow-based allocation for IDA is planned by the end of 2027.
This hybrid setup – combining flow-based IDA with Net Transfer Capacity (NTC) in continuous trading – brings new requirements, including:
- Extraction of ATC values after IDA before the resumption of continuous trading
- Adjustments to process timing
- Updates to the algorithm methodology
A public consultation on these changes closed on 12 June 2026.
For over ten years, E-Bridge Consulting has supported European NEMOs and TSOs in the development of SIDC. We are proud to contribute to this next phase of market integration. David Myška is closely involved in this process as TSO co-convenor of the SIDC Market & System Design group.
