The intermeshed European electricity market today requires constructive cooperation between all actors and organisations. Amprion, one of the four German transmission system operators (TSOs), considers the efficiency of cooperation at European level a key prerequisite for continental security of supply and the success of the energy transition. For this reason, the TSCNET shareholder was and is involved in numerous regional and European initiatives on system operation, network planning, and market integration. Also, Amprion is an observant analyser of the European market development, especially in the Central Western Europe (CWE) region and annually provides the Market Report for the CWE countries. The 2020 edition for the period 2015 to 2019 has just been released.
The Market Report is based on data from Flow-Based Market Coupling (FBMC) introduced by the six CWE countries (Austria, Belgium, France, Germany, Luxembourg, the Netherlands, and Belgium) in May 2015. By involving the entire regional network in the coupling of electricity markets, FBMC allows TSOs to allocate cross-border capacity and maximise market efficiency without jeopardising grid stability. The Amprion report clearly indicates the progress of the CWE market integration, especially with the following figures: In 2019, price convergence on the day-ahead markets increased by a further 10%, reaching 42%. In other words, in almost every second hour, day-ahead prices in the CWE have been equal because the TSOs succeeded in making sufficient power transmission capacity available to meet the demand of the entire region at the same prices.
Dr. Hans-Jürgen Brick, CEO of Amprion, comments on the positive development: “The Market Report furnishes proof that trade barriers could be decreased during the course of 2019.” Dr Brick places particular emphasis on the efficient and highly interconnected power grids in the CWE region and their “key role in ensuring Europe’s stable and secure energy system”. As regards Amprion’s individual contribution, the TSO was able to further improve the efficiency of its grid and thus strengthen European electricity trading. Whereas in 2018 the share of all active trade constraints caused by Amprion internal elements was 13.7%, in 2019 it was only 7.8%. This is due not only to the ongoing grid expansion measures, but also to the monitoring of overhead lines, which allows more efficient utilisation of the most important power lines.