The SEM Committee requested that the Regulatory Authorities (RAs) investigate the options for Day Ahead Market Coupling of the SEM to other markets and the extent to which this could be achieved without changing the high level design of the SEM. In August 2010, the RAs appointed Pöyry Management Consulting (UK) Ltd. to carry out this investigation and produce a report to the SEM Committee.
Pöyry developed six conceptual options for a day-ahead trading solution. All of the options proposed would keep the gross mandatory characteristic of the SEM to the extent that generators would still have to offer their whole generation into to the SEM. The volumes traded in the day ahead market would have firm volumes and prices and the final payments for generators and suppliers would be comprised of two components: day ahead and ex-post SEM.
The specific options identified in the paper should not be regarded as an indication of any proposals that SEMC would consider in the future. However the analysis and conclusions of the report will form a valuable input into the longer term market integration project. The terms and reference for this project are to be published in July 2011.