Bids are the buy offers that are posted by buyers to express their desire to buy EACs on the Exchange. Different than asks, bids are not tied to specific EACs. Bids are entirely defined by the buyer’s needs, which vary in terms of their respective proof of impact needs. Bids include a maximum price, a volume, and a requirement specification that we call “product”. The maximum price is the highest price that a buyer is willing to pay per EAC. The volume defines the amount of EACs (i.e., the volume of MWh) that a buyer wants to buy.
For the product, the buyer can define the characteristics that the underlying EAC of an ask has to fulfill in order to be matched. In our reference implementation, the product lets the buyer define the device type, like solar or wind, device vintage (i.e., the installation date), the location or grid region, and the MWh generation time frame. But it would be possible to expand this to many other characteristics to meet buyers’ needs. All of these product specifications are entirely optional and so the buyer can simply choose to specify “any” to express that a given characteristic is not important to increase the number of possible product matches.
As the bid is not tied to anything like an EAC, any registered user can always create a bid without any requirements from the system. But users should be aware that creating a bid means signaling a commercially binding intent to actually buy EACs if they are matched with an ask. To only be notified when a matching ask is found, users can choose to create a notification instead of a bid. The notification includes all the same criteria as the bid with one exception: The user does not have to define an EAC volume. This allows the user to create notifications solely based on the product specification and price without having to commit to a specific volume. The idea behind this is that buyers can already monitor the market without having to know exact electricity consumption data—increasing market transparency.
Just as asks, bids appear anonymously on the Exchange once created. Only the Exchange operator knows which bid was created by which user. If the bid is matched, it is instantly removed from the Exchange. If not, it is visible on the Exchange with the expectation that a matching ask will be created in the future. Buyers can choose to cancel bids that have not been matched to remove them from the Exchange. Users can also choose to cancel notifications. Bids cannot be updated. To change parts of the bid like the price, the ask has to be canceled and a new bid has to be created.
Only registered users can create a bid
Buyers have to specify maximum price and volume to create a bid
Buyers should be able to define device type, device vintage, location or grid region, and time frame, if not selected the system default should be “any”
Buyers have to specify a maximum price to create a notification
When created, the bid with the right specifications should appear on the Exchange
Only bids that have not been matched can be removed
When removed, the bid should disappear from the Exchange