Market Coupling of the CWE Region and Nordic Electricity Market
The Transmission System Operators (TSOs) and Power Exchanges of Central West European countries Belgium, France, Germany, Luxembourg and The Netherlands (the so called CWE countries) are preparing themselves to introduce Price Coupling in 2010. The German market is already coupled to the Nordic market via EMCC (European Market Coupling Company) since November 9, 2009. Also, the integration of the NorNed cable, which connects the Dutch electricity market with the Nordic market, is being discussed.
E-Bridge was approached by the involved TSOs and Power Exchanges of the two regions (Amprion, APX-ENDEX, Belpex, ELIA, EnBW Transportnetz, Energinet.dk, EPEX Spot, Fingrid, NordPool Spot, RTE, Statnett, Svenska Kraftnät, TenneT, transpower and Vattenfall Europe Transmission) to develop and evaluate different models for the interregional Market Coupling of the CWE and the Nordic regions.
E-Bridge conducted the study in close cooperation with the project partners. E-Bridge conducted a quantitative and a qualitative analysis. The quantitative analysis simulated the social welfare gain and the efficiency of the price signals of the different Market Coupling solutions. The calculation was based on historical market data and was performed by Belpex in cooperation with APX-ENDEX.
The qualitative analysis evaluated praxis-oriented issues as ease to set up and consistency with laws and legislations, but also issues such as operational integrity and transparency. E-Bridge analyzed different solutions for Loose Volume Coupling, Tight Volume Coupling and Price Coupling. We also developed and evaluated an hybrid scenario, which includes elements of Price Coupling as well as of Volume Coupling.
The study led to the conclusion that Price Coupling is conceptually the most attractive Market Coupling solution, as it leads to a significant Social Welfare gain as well as to efficient price signals. It also provides high operational integrity and transparency. The simulation showed that the special demand and supply curves in the Danish markets lead to critical results particularly if volume-coupled.
The study has been published by the project partners. It can also be obtained directly from E-Bridge. Click here: I am interested in the CWE-study.
