MARKET

The capitals held by PSE allow it to implement its business strategy and create value for stakeholders.

Area of value creation

I. We are actively involved in designing market mechanisms in the process of building the European electricity market, with particular regard to the conditions of the domestic electricity market. Read more

II. We make efforts to develop favourable market conditions to ensure effective and secure operation of the National Power System as an element of the European market . 
Read more

III. We support the active participation of consumers in market mechanisms. Read more

I. We are actively involved in designing market mechanisms in the process of building the European electricity market, with particular regard to the conditions of the domestic electricity market.

  • PSE is involved in the process of building the electricity market in Europe, in particular to create the following:
    • Flow-Based Market Coupling for day-ahead and intra-day markets,
    • cross-border balancing market.
  • We are working to strengthen the coordination of cross-border exchange in Europe, including in terms of reducing unscheduled flows through the NPS.

II. We make efforts to develop favourable market conditions to ensure effective and secure operation of the National Power System as an element of the European market.

  • PSE is involved in the process of building the electricity market in Europe, in particular in:
    • the development of the capacity market and conducting successive auctions,
  • We are implementing further segments of the target European electricity market model on the borders of the NPS (the Target Model).
  • We are effectively balancing of the power system, particular with respect to the following:
      • fault-free execution of the balancing market processes,
        • development of the balancing market mechanisms.

III. We support the active participation of consumers in market mechanisms.

  • We develop mechanisms for active participation of consumers in the NPS balancing.
  • We develop mechanisms for active participation of consumers in the electricity market.
  • We support various forms of market functioning of consumers, such as prosumers, aggregators and energy clusters.

Our contribution ─ market

  • We are working on the development of SIDC and SDAC – key initiatives include:
    •  in the SDAC area – implementation of 15-minute market products (Day-Ahead 15 min MTU);
    • in the SIDC area:

(i.) introduction of the Intra-Day Auctions (IDA) mode, whereby prices are set for individual market areas as the basis for determining the congestion rent for each border,
(ii.) implementation of 15-minute market products (Intra-Day 15 min MTU),
(iii.) implementation of the FBA method as the target solution for the SIDC.

  • PSE representatives are involved in the work of European institutions and agencies:  
    • European Network of Transmission System Operators for Electricity (ENTSO-E). ENTSO-E consists of 40 transmission system operators from 36 countries. The most important elements of the ENTSO-E working structure are as follows:
      • Market Committee,
      • System Development Committee,
      • System Operations Committee,
      • Research, Development & Innovation Committee,
      • Information and Communication Technologies Committee,
      • Legal and Regulatory Group.

        PSE is represented on each of them.

    • European Commission. Cooperation on the identification of critical infrastructures in accordance with Council Directive 2008/114/EC of 8 December 2008 on the identification and designation of European critical infrastructures and the assessment of the need to improve their protection.
    • European Parliament, ACER. The cooperation concerns the coordination of work in the Council of the European Union.
  • Nearly 100 representatives of our company carry out tasks at all levels of ENTSO-E. The competence of our employees ensures involvement in structures of varying complexity and responsibility, such as groups of a strategic decision-making, operational/implementation, and support nature.

  • Making transmission capacity available by PSE in 2023:
    • in the annual auction, 
    • in the monthly auction,
    • through the day-ahead market cross-border electricity exchange,
    • through the intra-day market cross-border electricity exchange.

  • Conducting the Polish capacity market’s eighth main auction  in 2023, which included the 2028 delivery year. It resulted in a total of 159 capacity contracts, including 40 capacity contracts for more than one year. As with the main auction for the delivery year 2027, only capacity market units meeting the 550 g/kWh carbon emission limit were also admitted to the main auction for the delivery year 2028.
  • Conducting additional auctions in the Polish capacity market in 2023 for individual quarters of the 2024 delivery year.
  • Number of borders covered by a market mechanism consistent with the European Target Model – five borders:
    • Poland – Sweden, 
    • Poland – Lithuania,
    • Poland ─ Germany,
    • Poland ─ Czech Republic,
    • Poland ─ Slovakia.


Polish borders covered by the Single Day-Ahead Coupling (SDAC) mechanism: PL-CZ, PL-DE, PL-LT (LitPol Link), PL-SE (SwePol Link), PL-SK, of which the PL-CZ, PL-DE, PL-SK borders are covered by the Core Flow-Based Market Coupling mechanism. Transmission capacity for the LitPol Link and SwePol Link interconnections is calculated according to the NTC method.

Polish borders covered by the Single Intraday Coupling (SIDC) mechanism: PL-CZ, PL-DE, PL-LT (LitPol Link), PL-SE (SwePol Link), PL-SK.

IRP service ─ the implementation of the capacity market in 2021 and other changes in the national electricity market, have necessitated the development and implementation of a new system service related to the reduction of electricity consumption by consumers in the NPS. This service is the Contingency Reduction of Power Consumption by Consumers Based on a Bidding Process (IRP), which replaced the previous DSR programmes. In the IRP service, the reduction volume is not specified; the products and capacities become known to the TSO after the collection of sales proposals (offers) submitted by the service providers in response to a request. The service is entirely voluntary and flexible – the providers are not obligated to make a sales proposal in response to a request.

In 2022 PSE implemented a new contracting model for the contingency reduction of power consumption service for the period from 25 March 2022 to 28 February 2023. The IRP Supplier Qualification System enables efficient and effective verification of providers and contracting for the IRP service. Entities meeting the criteria for the service, as set out in the IRP Supplier Qualification System Regulations, can apply for a contract via the PSE Purchasing Platform. Applications were accepted on a rolling basis from 25 March 2022 to 28 February 2023. The term of a contract could vary between the providers, depending on when the contract is signed – however, service provision could start no earlier than 1 April 2022. Five contracts were concluded, which were in force until 31 March 2023.

At the next stage, in March 2023, PSE issue a call for proposals under the IRP Provider Qualification System for the period from 1 April 2023 to 31 March 2024.

The number of providers with who PSE had IRP service contracts in 2023: 

  • 5 between 1 April 2022 and 31 March 2023,
  • 6 between 1 April 2023 and 31 December 2023.

Between 1 January 2024 and 31 March 2024, PSE had contracts with 5 IRP service providers to ensure continuity of services, and in March 2024, PSE issued a call for proposals under the IRP Provider Qualification System for the period from 1 April 2024 to 31 March 2025. As at 13 June 2024, PSE had entered into 5 contracts for the provision of the IRP service for the aforementioned period.

IZP service – w 2023 r. in 2023. PSE started work on the introduction of a new service to be used by TSOs in situations of over-supply of electricity generation in the NPS, i.e. the Contingency Increase of Power Consumption by Consumers Based on a Bidding Process (IZP). IZP is to provide the TSO with access to the quick contingency reserve for increasing the volume of power consumed by users on instructions from the TSO.

The ERO President, by decision of 20 December 2023, amended the Balancing Conditions (BCs), which added the new IZP service to the list of system services for the contingency reserve. Due to the provisions of the new BCs, which came into effect on 14 June 2024, the ERO President, by decision of 31 May 2024, approved the amendments to the Transmission Grid Code (IRiESP) specified in the Revision Sheet, under which the IZP service was included in IRiESP.

As intended, the IZP service consists of the right to offer a load increase and the obligation to perform, for a fee, a load increase in the amount offered, but without compensation for the readiness to provide this service. The introduction of the IZP service will increase the number of TSO tools for the NPS balancing. The service will be able to be used in particular to increase power consumption during periods of high generation from RES sources and low demand for electricity in the NPS. The new service will reduce the need for non-market redispatch of RES sources. The IZP service will make it possible to use the existing potential of electricity consumers who hold ORed certificates, i.e. documents that entitle them to participate in the DSR programme.

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