Trading Framework

The Nemo Link Interconnector connects the GB and Belgium electricity systems via subsea cables, allowing customers to trade electricity between the two countries. The interconnector commenced commercial operations on 31^st January 2019. Through Nemo Link, customers have the opportunity to buy up to 1000MW capacity in either direction via explicit and/or implicit auctions.

The diagram below shows capacity products are grouped into 3 overall timeframes:

Long Term: Explicit auctions are held for Annual, Quarterly and Monthly capacity.

Day Ahead: The ability to import and export power for the following day is available through the Market Coupling Mechanism (Implicit auction)

Intraday: Capacity is auctioned explicitly within the current day for the following 6 hours. More information on Intraday including auction and nomination timings can be found here.

‘Use It Or Sell It’ (UIOSI)
UIOSI is a process where Long Term transmission rights are not nominated and re-sold in the implicit auctions – customers holding these rights are entitled to receive an automatic return amounting to the difference between the day ahead market price (adjusted to losses).

Trading Systems

(1) All Nemo Link’s explicit auctions are held on eCAT system run by Joint Allocation Office (JAO), an organisation that manages cross-border auctions across Europe.

(2) If customers wish to nominate capacity then this process will be carried out via the Regional Nomination Platform (RNP) developed based on Damas system by Unicorn.

(3) For implicit auctions, power and capacity can be bought via a power exchange (Nord Pool Spot or EPEX Spot).

Onboarding Process

Customers wish to participate in Nemo Link’s auctions can be registered as a non-physical or a physical participant.

• Non-physical customers are encouraged to send the registration form (step 1) and required to register with JAO (step 2).
• Physical customers are required to register with JAO (step 2) and additionally sign the Nomination Participation Agreement with Nemo Link (step 3) and other registration process in each market, i.e. GB – with NGESO and BE – with Elia (step 4 to step 7).

Please refer to the Nemo Link Registration Documents for further detailed information on each step and the Nemo Link’s Contractual Framework for further information on a number of contracts and agreements related to the onboarding process.