30 September 2013
The project partners of the North-Western Europe (NWE) day-ahead price coupling project have set the target launch date of NWE on 26 November. NWE will be the first implementation of the Price Coupling of Regions (PCR) solution, developed by European Power Exchanges and will run in a common synchronised mode with South-West Europe (SWE). The launch is a significant step towards an integrated European power market.
The 17 project partners decided on the target go-live date following the current positive test status in the joint integration and simulation testing by the PCR project and NWE. The target go-live date is still subject to successful finalisation of testing, contractual arrangements as well as final regulatory approval. Price coupling allows cross-border transmission capacity to be used directly by Power Exchanges to minimise price spreads between markets – known as implicit allocation. The final go/no-go decision will be taken early November.
The PCR solution has been developed by European Power Exchanges to provide a single algorithm and harmonised operational procedures for efficient price calculation and use of European cross-border transmission capacity. The start-up of NWE based on PCR will be a significant step towards achieving an integrated European day-ahead power market, expected to increase liquidity, efficiency and social welfare. NWE countries cover 75% of Europe’s electricity demand.
The partners involved are the four Power Exchanges and 13 Transmission System Operators (TSOs) in the NWE region. The NWE project covers the markets of Germany/Austria, France, Belgium, Netherlands, Luxembourg, Great Britain, Denmark, Finland, Sweden, Norway, Estonia, Latvia, Lithuania, and Poland is also coupled to Nordic via the SwePol Link.