19 November 2014 – Amsterdam / Brussels / London / Madrid / Oslo / Paris / Prague / Rome.
The creation of the European Internal power market has reached another milestone. The 4M Market Coupling (4M MC), integrating the markets of OTE in Czech Republic, HUPX in Hungary, OPCOM in Romania and OKTE in Slovakia, has today been launched successfully. The 4M MC, as extended by Romania, replaces the Trilateral Coupling, in operation since 2012 between Czech Republic, Hungary and Slovakia, and is considered as an intermediate step towards the single European day-ahead market.
The 4M MC uses the Price Coupling of Regions (PCR) solution, a set of harmonised procedures consistent with the other European regions already in coupling operations. The PCR solution is used to connect the power markets across Europe and it prepares grounds for smooth future integration of the CEE region and the rest of Europe.
The PCR solution has been developed by European Power Exchanges to provide a single algorithm and harmonised operational procedures for efficient price calculation, as well as use of European cross-border transmission capacity, calculated and offered to the market in a coordinated way by TSOs. Prices and net transfers are determined using the common algorithm “Euphemia”, based on the order books and available transmission capacities. By allowing decentralised operations, the solution assures a high level of security.
The PCR project has been a major undertaking by the involved Power Exchanges APX/Belpex, EPEX SPOT, GME, Nord Pool Spot, OMIE and OTE. Since the start in 2009, over 200 people from the participating Power Exchanges across Europe have taken part in the PCR project.