The Belgian Strategic Reserve Market Segment (Belgian SRM) is a market segment dedicated to the efficient allocation of Elia’s Strategic Reserve with non-matched off-take Limit Orders at maximum Order Price from the EPEX SPOT Belgium DAM during the winter period.
The creation of a strategic reserve is part of the measures of the so called “Plan Wathelet” which was initiated by the former Belgian Secretary of State in charge of Energy Melchior Wathelet with the aim of guaranteeing Belgian electricity supply in the future. The “Plan Wathelet” consists of several elements, amongst which the creation of a Strategic Reserve.
The strategic reserve is designed for situations where the total Belgian consumption can’t be covered by the available production capacity in Belgium and imports from other countries. The strategic reserve is thus a means to avoid curtailment of load. The design, procurement and operation of the strategic reserves mechanism has been assigned to Elia, under close supervision of the CREG, who also validates the functioning rules of it.
Through this new mechanism, Elia will be able to activate generation units that would otherwise be unavailable or to instruct consumers willing to participate in this mechanism to reduce their load. The strategic reserve will be called on only in case of structural shortfall during the winter period, from 1 November to 31 March.
More information on the winter situation in Belgium, and strategic reserves in specific, can be found on a dedicated page on Elia’s website.
The functioning of the Belgian SRM
During the winter period, from 1 November until 31 March, the part of off-take limit Orders submitted at the maximum Order price on the Belgian DAM that have not been matched in the Belgian DAM auction shall be replicated by EPEX SPOT Belgium in the Belgian SRM.
After the publication of the final results of the Belgian DAM contracts are created at the maximum Order price of the EPEX SPOT Belgium DAM by matching the replicated off-take Orders with the strategic reserve offered by Elia on the Belgian SRM. In the case that the volumes offered by Elia are not sufficient to fully match all replicated off-take Orders, the replicated off-take Orders shall be matched pro rata.
Publication of the Belgian SRM results and contracts will happen with only a short delay after the publication of the Belgian DAM results, and participants will be alerted of this via a breaking message in the trading platform.
For further practical information, please consult the Belgian SRM presentation.
Clearing & settlement
In order to guarantee anonymity and financial security, all the contracts concluded on the Belpex Spot Market are cleared and settled by ECC.
APX handles cash management arising from the contracts concluded by the participants on the Belpex Spot Market and guarantees the execution of the financial obligations.
Electricity purchased and sold on the EPEX SPOT Market is exchanged on the Belgian hub via the Elia nomination system. In order to ensure anonymity amongst participants, EPEX SPOT Belgium performs the necessary counter-nominations for each participant with regard to the electricity traded by that participant on the market segments of the Belgian Spot Market. Supply of the electricity is guaranteed through acceptance of the nominations by Elia.