DAM Overview

 

    • Establish an efficient & competitive marketplace
    • Ensure that consumers benefit from the market

METHODOLOGY:

    • Development of consistent market mechanisms.
    • Efficient price signals for the procurement and transmission of electricity.
    • Assurance of fair and open access to the transmission system.
    • Optimization of generation & transmission capacity.

DAM features

  • Market for secure, effective and non-discriminatory trade of electricity:
    • Trading to be concluded daily for delivery next day
    • Forward bidding up to 10 days
    • Participants submit bids (purchase) & (sale) offers
    • Closed market – only market operator and participant know the details of the bid / offer
    • Price discovery
  • Provides a neutral reference price
    • Open and competitive market
    • Provides platform to manage demand & supply fluctuations
    • Gives price signals to policy makers
    • Stable & Liquid market will give investor confidence
  • Supports an auction-trading model
    • All sales & demand bids are aggregated at a fixed time
    • The balance price is valid for all trades
    • Tool for managing grid congestion
    • System price (no grid congestion)
    • Area prices (if transmission capacity is exceeded)

Conditions Of Trade

  • Participants can only trade directly on the DAM market upon:
    • Having been licensed or given permission by the host country to undertake cross border trading
    • Acceptance as a Market Particpant by SAPP Executive Committee
    • Being party to a TSO connected to a SAPP Control Area and have arrangements for Balance Responsibility
    • Signing the DAM governance documents
    • Opening of the requisite accounts for trading purposes and having the requisite security for trading purposes
    • Have at least two trained Traders