How the Italian electricity exchange works, where every day the energy price for the following day is determined.
The Day-Ahead Market (MGP) is the main electricity trading platform in Italy. On this market, managed by GME, hourly blocks of energy are exchanged for the 24 hours of the following day.
How it works
Every day by 12:00 PM, producers and wholesalers submit sell and buy offers for each of the 24 hours of the following day. GME collects all offers and, through an optimization algorithm called market clearing, determines prices and accepted quantities for each zone and hour.
Italian electricity markets
| Market | Code | Function | Timing |
|---|---|---|---|
| Day-Ahead Market | MGP | Main energy trading | D-1, by 12:00 PM |
| Intra-Day Market | MI | Real-time adjustments | Multiple intraday sessions |
| Forward Market | MTE | Future delivery contracts | Continuous |
| Dispatching Services Market | MSD | Grid balancing | Real-time |
Relevance for businesses
The MGP determines the PUN, which in turn directly influences variable-price contracts. Companies with predictable consumption profiles can use forward markets to lock in future prices, reducing exposure to volatility.
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