Two dates have redefined Europe’s energy landscape this year. On March 18, intraday markets began operating in 15-minute intervals, and on October 1, the transition was completed: all electricity markets across continental Europe now trade on a quarter-hourly scale.
A few weeks into the trial period, both market operators and participants have demonstrated strong readiness for this new system.
The benefits of the change in trading model
Why this change, and why now? The transformation into a 15-minute trading model responds to the growing role of renewable energy sources, whose natural operation differs from fossil fuels.
Under the previous hourly system, the energy trading intervals were sufficient for traditional sources. Renewables, however, require more accurate forecasting and control, as solar and wind generation fluctuate based on weather conditions.
By dividing the day into shorter intervals, the quarter-hourly model allows markets to adapt more dynamically to the natural variability of renewable energy.
Another major winner is energy storage. With 96 trading periods instead of 24, market operators can better integrate and manage batteries, a technology that will play a key role in achieving Europe’s targets of 55 GW of capacity by 2030 and 126 GW by 2050.
Greater battery capacity will help prevent instability and large-scale outages — such as the blackout Spain recently experienced — by acting as a backup system to stabilize the grid.
The 15-minute market also helps manage another characteristic of renewables: their dependence on sunrise and sunset. There's the morning slope, when the sun rises and solar energy begins to generate power, and the evening slope, when the sun sets and solar generation drops rapidly. During these periods, there are variations in the amount of energy produced, so trading in 15-minute intervals makes it easier to adapt to these slopes.
Challenges and risks of the quarter-hour model
While essential for a renewable-driven future, a transition of this magnitude also has its drawbacks. Operating in 15-minute intervals introduces a higher degree of market volatility and significantly reduces response times. This limits the viability of manual operations, as traders now need to process and act on data four times faster than before.
For many energy companies, the main risk lies in regulatory compliance without sufficient digital readiness. Without automated systems and advanced analytics, discrepancies between forecasted and actual production can lead to costly imbalances and financial losses.
Technological solutions for the 15-minute model
Technology has long played a role in optimising energy trading, and in today’s data-driven environment, automation and AI are becoming crucial. Many energy players have already integrated AI to forecast prices, automate bidding or improve risk management.
However, when it comes to balancing services, the mechanisms that ensure real-time alignment between supply and demand are more limited in scope. This is a growing concern, as the new model significantly increases the volume and speed of trading required. While several national and local solutions have emerged, there are no pan-European tools for balancing markets.
A complete tool for a European single market
The lack of a unified trading tool was less problematic in the hourly model, but under the 15-minute system, the gap has become critical. Without integrated platforms, many organizations risk missing additional revenue opportunities and operating less efficiently.
Recognizing this challenge, NTT DATA began developing a comprehensive solution over four years ago—well ahead of the new regulation’s implementation.
The result is Syntphony Power Trading, a solution that allows the representation of power-generation assets in the wholesale market. On the one hand, it collects information from systems in real time and generates a forecast for the following quarter-hourly periods based on historical data and weather conditions. On the other hand, each client defines their strategies and, from all the available information, the system calculates the best bid for each market.
With access to all European markets, the platform allows users to allocate energy optimally, manage positions, and adjust in real time.
Valuable features for automation and sustainability
One valuable feature is the autotrader, which executes decisions automatically according to daily, weekly or monthly strategies. This gives organizations greater flexibility and agility in managing their assets and helps them avoid potential deviations or additional costs. The trader becomes a supervisor of the solution, allowing the tool to operate in each market according to the predefined strategies.
Our solution also helps organizations get as close as possible to the net-zero goal because it enables better management of the entire generation portfolio. By visualizing and managing all assets simultaneously and in real time, it is possible to optimize the generation mix and thus avoid emitting more carbon dioxide than necessary.
What to do next
Download a brochure about Syntphony Power Trading to see how our platform handles every operational step securely and efficiently.