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Energy & Renewables vocabulary · Energy Markets and Tariffs

Day-ahead market

Meaning in energy & renewables, with examples

nounCommon term

In energy & renewables, day-ahead market means: An exchange market where electricity for each hour, or quarter-hour, of the next day is bought and sold, usually through bids that close around midday.

In Turkish: gün öncesi piyasası, GÖP

How it is used

The main reference for short-term electricity prices. Participants submit bids and offers; the market clears and sets a price for each hour, called the market clearing price. Later changes are traded on the intraday market, and real-time imbalances are settled in the balancing market.

Example sentences

  1. Day-ahead market prices peaked at 7 p.m., just after sunset.

  2. Our trading desk submits bids to the day-ahead market before noon every day.

Common collocations

  • day-ahead price
  • market clearing price
  • submit bids
  • intraday market
  • balancing market
  • wholesale marketThe market where electricity is traded in large volumes between generators, suppliers, traders and large consumers before it reaches end customers.
  • power purchase agreementA long-term contract in which a buyer, such as a utility or a large company, agrees to purchase electricity from a specific power project at an agreed price.
  • peak demandThe highest level of electricity demand in a given period, such as a day or a year, which the power system must be able to supply.
  • demand responseChanging when or how much electricity consumers use in response to price signals or requests from the grid operator, for example reducing factory load during a peak.

More terms: Energy Markets and Tariffs

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