Today for the first time, capacity for the Italian-Austrian, Italian-French and Italian-Slovenian borders has been implicitly allocated through the PCR solution for the Day-Ahead markets, making those borders part of the MRC. This full price coupling allows the simultaneous calculation of electricity prices and cross-border flows across the region. This will bring a benefit for end-consumers derived from a more efficient use of the power system and cross-border infrastructures as a consequence of a stronger coordination between energy markets.
With this achievement, cross-border capacity of all interconnectors within and between the following countries is now allocated in the day-ahead timeframe: Austria, Belgium, Denmark, Estonia, Finland, France, Germany, Great Britain, Italy, Latvia, Lithuania, Luxembourg, the Netherlands, Norway, Poland (via the SwePol Link), Portugal, Slovenia, Spain and Sweden.
The Day-Ahead markets of MRC extended to the Italian Borders Market Coupling now cover 19 European countries, accounting for about 2,800 TWh of yearly consumption. The daily average cleared volume over these countries amounts to over 4 TWh, with an average daily value of over €150m.
Information regarding the Italian-Swiss border
Though all Swiss borders are technically ready for market coupling, their coupling is delayed in the course of ongoing bilateral negotiations between Switzerland and the EU Commission. The partners remain ready to go live within a short timeframe, as soon as the present political situation evolves.
Information regarding Italian-Greek border
The Italian-Greek border will be technically ready for market coupling at a later date. The Go-Live date of the Italian-Greek border will be decided as soon as its technical readiness to enter has been assessed within the Italian Borders Market Coupling project.
About the projects:
The Multi-Regional Coupling (MRC) is a pan-European initiative dedicated to the integration of power spot markets in Europe. It is a cooperation between the Power Exchanges APX, Belpex, EPEX SPOT, Nord Pool Spot and OMIE, and the Transmission System Operators 50Hertz, Amprion, Creos, Elia, Energinet.dk, Fingrid, National Grid, REE, REN, RTE, Statnett, SvenskaKraftnät, TenneT TSO B.V. (Netherlands), TenneT TSO GmbH (Germany) and TransnetBW. The cooperation operates a price coupling of the Day-Ahead wholesale electricity markets, increasing the efficiency of the allocation of interconnection capacities of the involved countries and optimising the overall social welfare. The MRC relies on one single algorithm, calculating simultaneously the electricity market prices, net positions and flows on interconnectors between bidding zones, is based on implicit auctions and facilitated through the Price Coupling of Regions solution. MRC currently covers countries accounting for 85% of European power consumption. From IBWT Go-Live, MRC is extended to include following operating IBWT Parties: APG, BSP, ELES, GME and Terna.
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. Today, PCR is used to couple the Multi-Regional Coupling, covering 85% of European consumption, and the 4M Market Coupling between the markets of Czech Republic, Hungary, Romania and Slovakia.
Italian Borders Working Table (IBWT) is a joint Market Coupling project between the Transmission System Operators (ADMIE, APG, ELES, RTE, SWISSGRID and TERNA) and Power Exchanges (BSP, GME, EPEX, EXAA and LAGIE) of Austria, France, Greece, Italy, Slovenia, and Switzerland, with the support of CASC and ECC. This project aims to define the pre-coupling, post coupling and exceptional situations processes that are necessary to allow the operation of Market Coupling between MRC and the Italian-Borders day-ahead markets.
For further info on PCR, MRC and IBWT please see these websites:
About Nord Pool Spot
Nord Pool Spot operates Europe’s leading power markets, offering both day-ahead and intraday trading to its members. 380 companies from 20 countries trade on Nord Pool Spot’s markets in the Nordic and Baltic regions, and on our UK market N2EX. In 2014 the group had a total turnover of 501 TWh traded power. Our markets are operated from offices in Oslo, Stockholm, Helsinki, Copenhagen, Tallinn and London. Nord Pool Spot strives continually to strengthen its business by working with integrity, together with members and stakeholders, to achieve excellence.
Lysaker, 24 February 2015
For further information, please contact:
Stina Johansen, Head of Communications, +47 916 50 603 (press inquiries)