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The Spanish electricity market is undergoing a major transformation with the implementation of quarter-hourly settlement (QH), a regulatory change aligned with European directives aimed at improving imbalance allocation accuracy, optimizing renewable energy integration, and increasing system efficiency.
While this transition brings clear benefits in terms of flexibility and transparency, it also poses operational and technological challenges for energy retailers, producers, and other market participants. In this article, we explore the regulatory framework, the market impact, and how QUIXOTIC makes adapting to this new model seamless.
Regulatory Context: From Hourly to Quarter-hourly Settlement
Spain’s transition to quarter-hourly settlement follows the European framework established in Regulation (EU) 2017/2195, which sets guidelines for electricity market operation across the EU. This regulation mandates the reduction of the Imbalance Settlement Period (ISP) to 15-minute intervals to enhance imbalance management and renewable energy integration.
At the national level, Red Eléctrica de España (REE) and the Comisión Nacional de los Mercados y la Competencia (CNMC) have been progressively implementing this model. Key milestones include:
- December 2024: Introduction of 15-minute imbalance settlement (ISP15).
- March 18, 2025: Implementation of the Market Time Unit (MTU15) in intraday continuous and auction markets.
- June 11, 2025: Full application of MTU15 in the OMIE day-ahead market and synchronization with the European market.
While quarter-hourly settlement is already used for Balancing Service Providers (BSPs) and ancillary services, extending it to the entire electricity value chain marks a significant shift in market operations.
What Changes with Quarter-hourly Settlement?
Until now, the Spanish electricity market operated with hourly resolution, where consumption and generation were measured and settled in 60-minute blocks. With the transition to quarter-hourly settlement:
• Greater granularity in measurement: Data points increase from 24 to 96 per supply point per day.
• More accurate imbalance settlement: Intra-hour offsets are eliminated, exposing more imbalance costs.
• Impact on market prices: Increased volatility in prices and imbalances, but also new opportunities in demand flexibility.
• Changes in energy scheduling: While the OMIE day-ahead market will remain hourly until June 2025, intraday and balancing markets will operate in 15-minute intervals.
Impact on Energy Retailers
Energy retailers face both technical and strategic challenges in adapting to this change:
• Increased data volume: The amount of information to be processed in measurement, settlement, and billing will quadruple.
• Adjustments in billing models: The shift to QH requires changes in tariff calculations and pricing structures.
• Higher imbalance volatility: Without hourly compensation, accurate forecasting and purchasing strategies in the wholesale market will be critical.
• Adaptation to new measurement methodologies: For metering points without QH telemetry, interpolations will be applied to hourly data, adding uncertainty to billing.
Additionally, the regulated tariff (PVPC - Precio Voluntario para el Pequeño Consumidor) will maintain its hourly price structure, but adjustments are expected in the calculation methodology to reflect the impact of quarter-hourly interpolation.
How Does QUIXOTIC Adapt to This Change?
QUIXOTIC is a modular subscription-based software designed to handle energy billing and other energy-related products. Our platform is already prepared to operate with quarter-hourly settlement, offering:
• Automated processing of QH data: Direct integrations with DSOs and REE for receiving and managing quarter-hourly readings.
• Adapted billing engine: Accurate calculation of tariffs and invoice generation based on the new settlement periods.
• Efficient management of large data volumes: Our cloud-first architecture ensures scalability and fast processing.
• Compatibility with interpolations and calculation methodologies: We align billing with the latest measurement rules to ensure accuracy and regulatory compliance.
• Process automation: Less manual intervention means fewer errors and greater operational efficiency.
Advantages of Billing with QUIXOTIC
Transitioning to quarter-hourly settlement is not just a technical challenge—it’s also an opportunity to optimize energy management. With QUIXOTIC, energy retailers can:
✔ Simplify their operational workload: Full automation of quarter-hourly billing.
✔ Reduce error risks: Eliminate inconsistencies in imbalance settlement.
✔ Ensure regulatory compliance: Guaranteed adaptation to REE and CNMC regulations.
✔ Optimize procurement and trading strategies: Gain better control over prices and imbalances.
Conclusion
Quarter-hourly settlement marks a major milestone in the evolution of the Spanish electricity market. While it requires adaptations in information systems, metering, and billing, it also opens the door to greater efficiency in system management.
Energy retailers that embrace flexible and scalable tools will be in the best position to capitalize on this transition. With QUIXOTIC, adapting to quarter-hourly settlement is fast, precise, and hassle-free.
If you want to learn more about how our software can help you navigate this new regulatory landscape, contact us, and we’ll be happy to assist you. 🚀
Omar Sequera
Technology Consultant specialized in Energy
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