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1. Market Coupling

The target model for the day-ahead timeframe is a European Price Coupling (EPC) which simultaneously determines volumes and prices in all relevant zones, based on the marginal pricing principle.       

Among the different elements of the EPC, the choice of a single algorithm that meets the TSOs’ requirements in terms of efficient allocation and can be approved by every Member State, is one of the most important.       

Another important element will be a common governance structure. In order to meet the 2014 deadline, the implementation of the EPC might start under interim governance arrangements until governance guidelines are finalised.      

The general approach to implementation of the target model across Europe relies on the following principles:      

  • Focus on North-West Europe (NWE) price coupling implementation by the end of 2012;       
  • Adjacent borders may adopt the Price Coupling of Regions (PCR) algorithm in parallel and/or join NWE price coupling from the beginning if this does not delay overall progress towards EPC;       
  • Common information level and flexible governance arrangements are necessary to ensure smooth integration of additional borders.       

BnetzA (DE), with support of AEEG (IT), is co-leading the Single European Price Market Coupling project.       

The cross-regional roadmap on Market Coupling can be downloaded here: Final version Cross-regional road map Market Coupling.pptFinal version Cross-regional road map Market Coupling.ppt.      

For the most recent developments, achievements and challenges related to this project, please read the quarterly reports.       

Regional Work plans 2011-2014 can be viewed here.