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