European electricity spot market shifts to 15-minute trading blocks

<p class="p1"><span class="s1">The European Power Exchange (Epex Spot) will switch its day-ahead market from hourly to 15-minute intervals on Sept. 30, a change mandated by the European Union that is expected to improve solar and wind integration, boost battery trading opportunities, and support dynamic tariffs.</span></p><p>The move was originally scheduled for June 11, but not all market participants reported readiness in time. The transition in day-ahead trading on the European electricity exchange Epex Spot from 60-minute blocks to 15-minute intervals required additional preparation.</p>
<p>On Sept. 30 the change will take effect, as Epex Spot confirmed in a mid-September press release. Trading will take place in the new timeframe for the first time that day, with corresponding deliveries starting Oct. 1.</p>
<p>“This is a true paradigm shift for the energy transition,” said Jörg Seidel, head of short-term asset optimization at Vattenfall. With 15-minute prices, “the market reflects reality much more accurately,” said Jannik Schall, co-founder and CPO of 1Komma5°.</p>
<p>Green energy trader Luox Energy, part of the Lumenaza electricity trading platform, called the move a “milestone for direct marketing – especially for photovoltaic systems.” Industry groups agree that quarter-hourly pricing benefits renewables because it better reflects generation patterns. They also expect positive momentum for battery storage marketing. Load and energy management systems, as well as dynamic tariffs, could become more attractive.</p>
<p>The EU required all European electricity markets to adopt 15-minute billing periods. In intraday trading, quarter-hour blocks have been available since 2011 alongside hourly blocks, with transactions possible up to five minutes before each interval – for example, until 1:55 p.m. for the 2:00 to 2:15 block.</p>
<p>In the day-ahead market, prices for the following day are set daily at noon. Until now, Epex Spot operated in 60-minute blocks, requiring direct marketers to prepare hourly forecasts for solar generation. Because actual output can shift within an hour, deviations had to be balanced in intraday trading. Accurate forecasts remain out of reach, but stakeholders expect shorter intervals will reduce ramp costs and raise revenues.</p>
<p>“Generation and demand can now be mapped much more accurately,” Seidel said. With quarter-hourly intervals, “generation forecasts can be submitted more precisely in the future, electricity from wind and solar can be marketed even more precisely, batteries and pumped storage can be used more efficiently, and flexibility in the system can be significantly increased.”</p>
<p>1Komma5° highlighted benefits for users of dynamic tariffs. Instead of 24, there will now be 96 prices per day, enabling “even more precise billing and more opportunities to buy electricity cheaply when there is plenty of wind or sun available.” Use of such tariffs for heat pumps, storage systems, or wall boxes will still require automated controls.</p>
<p>The company also forecast new opportunities in battery storage trading. The change is expected to create “more and stronger price peaks and troughs within a day” and thus better profit potential. Forecasting, trading systems, and financial products, however, will face higher demands.</p>
<p>Dynamic tariff provider Tibber said its customers will benefit “both through the manual control of charging processes or household appliances and through automated adjustment via smart functions.” The company has updated its app with revised price screens. Customers can now toggle between 15-minute and 60-minute views, with color coding and a price ring providing “intuitive information about whether the current price is relatively low or high over the course of the day.” The transition will take place automatically at no cost. Customers without a smart meter will remain on Tibber’s “monthly dynamic tariff.”</p>
<p>Whether the new time frame can be implemented without problems will become clear after the first day of trading. Epex Spot said it does not expect complications. The earlier postponement from June 11, announced May 14, occurred even though testing and preparations were “on track.” Some participants were not ready to operate.</p>