Heralded as a revolutionary first step towards a common European electricity market, the four power exchanges and 13 transmission system operators (TSOs) in the North-Western Europe (NWE) day-ahead price coupling project have successfully launched NWE Price Coupling.
The North-Western Europe now operates
under a common day-ahead power price calculation
For the first time, the NWE region, stretching from France to Finland, operates under a common day-ahead power price calculation using the Price Coupling of Regions (PCR) solution.
The power exchanges (APX, Belpex, EPEX SPOT and Nord Pool Spot), which account for 75 per cent or more than 2000 TWh of European electric consumption, will now calculate electricity prices at the same time and in the same way.
According to a statement from EPEX SPOT, it expects consumers to benefit from the more efficient use of the power system in the region, resulting from a more closely connected market.
Although NWE is the first region to implement the PCR solution, South Western Europe (SWE) is also synchronized with the new system.
Commenting on the news, Jean-François Conil-Lacoste, co-chair of the NWE project, said, “We are delighted to provide this core milestone of the future pan-European power market.”
Price coupling allows cross-border transmission capacity to be used directly by power exchanges’ day-ahead markets.
The PCR solution has been developed by European power exchanges to provide a single algorithm and harmonized operational procedures for the efficient price calculation and use of European cross-border transmission capacity, calculated and offered to the market by the TSOs.
All interconnectors within and between the following NWE countries will now expected to be optimally utilized: Belgium, Denmark, Estonia, Finland, France, Germany/Austria, Latvia, Lithuania, Luxembourg, the Netherlands, Norway, Poland (via the SwePol Link), Sweden and the UK.
The SWE project covers France, Portugal and Spain.
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