The European Commission has a stated goal of harmonising the European power markets. The aim is to create a pan-European market with closer connecting of power markets to improve the efficient use of energy across national borders, the European Target Model for electricity market integration.
As Europe’s leading power market, active in nine countries, and, with the Nordics presenting the world with its first deregulated power market, Nord Pool has carved ourselves a position at the very heart of delivering the European target model for 2014. We are fully focused on achieving what is best for the future of the European power market and our members.
Under the Target Model, the EU has set up common rules to bring-on efficient use of cross-border capacity and harmonisation of European wholesale power market arrangements. The main features of the model are day-ahead market coupling and continuous intraday trading to allow cross-border trading of electricity closer to real time; electricity balancing between TSOs; and long-term transmission rights to access capacity on interconnectors.
That has involved working diligently for the delivery of the Price Coupling of Regions (PCR) and the North-Western European Price Coupling (NWE) launched in February 2014. Since then two extensions of the PCR-coupled area have taken place. Spain and Portugal joined in May 2014, while Italy coupled with France, Austria and Slovenia in February 2015. This full area is called Multi-Regional Coupling and now covers 19 countries, standing for about 85% of European power consumption. Nord Pool is as well fully involved in the Cross-Border Intraday Market project (XBID).