ECC supports the vision of an integrated cross-border wholesale energy market in Europe. Together with its Partner Exchanges, network operators and trading participants, ECC is involved in various projects for connecting European electricity markets, the so-called Market Coupling.
Market Coupling Approach
By using the available transmission capacities between the different market areas, the following goals can be achieved:
- minimising differences in prices between two or more market areas
- ensuring convergence of power prices across regions
- reducing price volatility
- providing access to cross-border capacities.
Through this, Market Coupling maximises the social welfare and supports the creation of a pan-European market area for power.
Role of ECC
Within the scope of Market Coupling, ECC cooperates closely with the European Power Exchange EPEX SPOT, which covers the German, Austrian, Swiss, French, Dutch, UK and Belgian market areas and the connected TSOs. With its connection to major TSOs across Europe and its expertise in providing physical settlement of power trades, ECC promotes the integration of regional markets towards a Europe-wide electricity market. As a dedicated clearing house, ECC provides clearing and settlement services for cross-border energy flows. It nominates the cross-border electricity flows to the transmission system operators (TSOs) and settles trades for all counterparties involved. ECC contributes to the overall welfare of the European power consumer / producer community by bundling the overall market liquidity and increasing the efficiency of the usage of cross border capacities.
Benefits for Suppliers and Customers
Market Coupling refers to the implicit day-ahead auction of cross-border capacities
- fair and efficient access to cross-border capacities,
- a reduction of price volatility and
- the convergence of power prices across regions.