The common price coupling algorithm, called PCR EUPHEMIA, is used in the Single Day-Ahead Coupling to calculate power prices across Europe, while implicitly allocating auction-based cross-border capacity.

What is PCR?

PCR is based on three main principles: a single algorithm, robust operation and individual power exchange accountability.

1. The common algorithm gives a fair and transparent determination of day-ahead electricity prices and a net position of a bidding area across Europe. The algorithm is developed respecting the specific features of the various power markets across Europe and the electricity network constrains. It optimises the overall welfare and increase transparency.
2. The PCR process is based on decentralised sharing of data, providing a robust and resilient operation.
3. The PCR Matcher and Broker service enables exchange of anonymised orders and electricity network constraints among the power exchanges to calculate bidding zone prices and other reference prices and net positions of all included bidding areas.

History

The project was operated by eight Power Exchanges: EPEX SPOT, GME, HEnEx, Nord Pool, OMIE, OPCOM, OTE and TGE.

One of the key elements of PCR project was the development of a single price coupling algorithm, which adopts the name of EUPHEMIA (acronym of the Pan-European Hybrid Electricity Market Integration Algorithm).

This is used to calculate energy allocation, net positions and electricity prices across Europe, maximising overall welfare and increasing the transparency of the computation of prices and power flows resulting in net positions.

 

Useful documents PCR Project Main Features 2020 All NEMO Committee EUPHEMIA Public Description (Single Price Coupling Algorithm)