South-Western and North-Western Europe Market Coupling Project Go-Live

Brussels, (PresseBox) - A significant further step towards the European Internal Electricity Market was reached on 13 May, 2014 with the successful go-live of the full price coupling of the South-Western Europe (SWE) and North-Western Europe (NWE) day-ahead electricity markets.

Following the go-live of the NWE day-ahead price coupling in February 2014, the extension to the SWE region now allows implicit capacity allocation on the French-Spanish and Spanish-Portuguese borders through the Price Coupling of Regions (PCR) solution. 

The achievement of this highly complex project is the result of strong cooperation between Transmission System Operators and Power Exchanges from 17 European countries. Electricity can now be exchanged from Portugal to Finland or Great Britain to Germany, under a common day-ahead power price calculation.

Following the successful go-live, ENTSO-E Chairman Pierre Bornard said, "The NWE-SWE day-ahead price coupling go-live leads to major benefits for the European consumers, thanks to further improvements in terms of renewable energy sources integration, optimal use of power transmission infrastructure and price convergence. It represents a key milestone towards the completion of the pan-European day-ahead electricity market."

In combination with the network codes, especially the Network Code on Capacity Allocation and Congestion Management (NC CACM) drafted by ENTSO-E and currently in the process of adoption as a European Regulation, this regional market development paves the way towards the achievement of the European day-ahead target model.

ENTSO-E and its members will continue to play an active role in the next steps moving Europe closer to an Integrated Electricity Market.

Related Links

February 2014 NWE Coupling Go-Live
ENTSO-E Regional Market Cooperation
Network Code on Capacity Allocation and Congestion Management

About the Projects

[i]North-Western Europe (NWE) Price Coupling is a project initiated by the Transmission System Operators and Power Exchanges of the countries in North-Western Europe. The 17 partners of this project comprise APX, Belpex, EPEX SPOT and Nord Pool Spot from the Power Exchanges' side; 50Hertz, Amprion, Creos, Elia,, Fingrid, National Grid, RTE, Statnett, Svenska Kraftnät, TenneT TSO B.V. (Netherlands), TenneT TSO GmbH (Germany) and TransnetBW from the TSO side. The cooperation is dedicated to the price coupling of the day-ahead wholesale electricity markets in this region, increasing the efficient allocation of interconnection capacities of the involved countries and optimising the overall social welfare. A single algorithm, calculating simultaneously the electricity market prices, net positions and flows on interconnectors between bidding zones will be used, based on implicit [/i]auctions and facilitated through the Price Coupling of Regions solution.
Price Coupling of Regions (PCR) is the initiative of seven European Power Exchanges (APX, Belpex, EPEX SPOT, GME, Nord Pool Spot, OMIE and OTE), to develop a single price coupling solution to be used to calculate electricity prices across Europe and allocate cross-border capacity on a day-ahead basis. This is crucial to achieve the overall EU target of a harmonised European electricity market. The integrated European electricity market is expected to increase liquidity, efficiency and social welfare. PCR is open to other European Power Exchanges wishing to join. Following NWE and SWE operations, the PCR solution will also be adopted by the Italian Borders market coupling project (IBWT) and by the Czech-Slovakian-Hungarian-Romanian market coupling (4M MC).
South-Western Europe (SWE) Price Coupling Project is a joint project between the French, Spanish and Portuguese TSOs, RTE, REE, REN, and the Power Exchanges OMIE in Spain and Portugal and EPEX SPOT operating the French market. This project aims to define the pre-coupling, post coupling and exceptional situations processes that are necessary to allow the implementation of Price coupling between NEW region and the Iberian day-ahead markets.

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