13 May 2014. In a landmark move towards an integrated European power market, the full coupling of the South-Western Europe (SWE) day-ahead markets was successfully launched today. As a result, the SWE and North-Western Europe (NWE) projects, stretching from Portugal to Finland, now operate under a common day-ahead power price calculation using the Price Coupling of Regions (PCR) solution.
Today, for the first time, the day-ahead transmission capacity on the French-Spanish border has been implicitly allocated through the PCR solution, replacing the previous daily explicit allocation. Full price coupling between the NWE and SWE projects 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 the achievement of full coupling of SWE day-ahead markets, cross-border capacity of all interconnectors within and between the following NWE and SWE countries will now be optimally allocated in the day-ahead timeframe: Belgium, Denmark, Estonia, Finland, France, Germany/Austria, Great Britain, Latvia, Lithuania, Luxembourg, the Netherlands, Norway, Poland (via the SwePol Link), Portugal, Spain and Sweden.
The combined day-ahead markets of the NWE and SWE projects account for about 2,400 TWh of yearly consumption. Since the launch of the PCR on 4 February, the daily average cleared volume over these markets amounted to 3.2 TWh, with an average daily value of over €200m.
The SWE full market coupling represents a further step towards the implementation of the European target model for the Internal Electricity Market in Europe in the day-ahead timeframe. Following the NWE-SWE full coupling, further extensions of the market coupling with the PCR solution are envisaged.