ACER workshop on amending the electricity price coupling algorithm methodology

On 24 November 2023, ACER received a proposal from all Nominated Electricity Market Operators (NEMOs) to amend the methodology for the price coupling algorithm and the continuous trading matching algorithm. The methodology sets the regulatory framework for the algorithms used for matching bids from market participants for day-ahead and/or balancing capacity and allocating cross-zonal capacities more efficiently in the European day-ahead and intraday electricity markets.

ACER is in the process of evaluating the proposal and will revise it where necessary to ensure that it will effectively enable “co-optimisation”. By allocating cross-zonal capacity where its market value is the highest (either to the day-ahead market or to the balancing capacity markets), co-optimisation facilitates the integration of the balancing capacity markets and allows for a more efficient use of cross-zonal capacity.

Event objective:

ACER is running a public consultation (from 18 January until 15 February 2024) to collect views from stakeholders to inform its decision-making process.

The aim of this workshop (for technical experts) is to discuss the main elements of ACER’s public consultation, in particular:

• further research and development activities on the remaining elements needed to enable the implementation of co-optimisation;

• the design of bids and specific market products that would allow the interactions between day-ahead market and balancing capacity markets to be captured; and

• the expected benefits of co-optimisation compared to the current market design.

ACER will answer stakeholders’ questions related to the public consultation.

Watch the workshop recording.