Delay for Interim Coupling

11.09.2020

To introduce single day-ahead coupling in a total of 23 European countries, the so-called 4M Market Coupling Countries (4M MC) – Czech Republic, Hungary, Romania, and Slovakia – are to be connected to the Europe-wide Multi Regional Coupling (MRC) of the electricity market. The initiative to implement the MRC extension is the DE-AT-PL-4M project, also referred to as “Interim Coupling Project”. It aims to establish implicit capacity allocation based on Net Transfer Capacity (NTC) at six borders: PL-DE, PL-CZ, PL-SK, CZ-DE, CZ-AT, and HU-AT. The TSCNET shareholders 50Hertz, APG, ČEPS, MAVIR, PSE, SEPS, TenneT, and Transelectrica – transmission system operators (TSOs) from Austria, Czechia, Germany, Hungary, Poland, Romania, and Slovakia – participate in Interim Coupling.

After the project had completed the design phase and entered the implementation phase at the end of 2019, Interim Coupling was actually supposed to start in September 2020. The TSOs and Nominated Electricity Market Operators (NEMOs) involved have now announced that the kick-off must be postponed. This is due to several project parties experiencing local implementation bottlenecks in the first quarter of 2020 because of interrelations between ongoing parallel projects. This led to a delay of several months in the implementation activities for Interim Coupling. National regulatory authorities have asked the European Commission to provide guidance on how to proceed with this project. Market players will be informed as soon as possible about the next steps.

The start of the AT-PL-4M MC project has been postponed

Linkup
> See MAVIR press release, html
> See PSE press release, html
> See SEPS press release, html
> Open AT-PL-4M MC information paper provided by Transelectrica (pdf, 262.12kB)

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New Local Implementation Project under SIDC

09.07.2020

European transmission system operators (TSOs) are committed to the European Energy Union by collectively working towards an integrated European electricity market. A key component for market integration is cross-border Single Intraday Coupling (SIDC), which was introduced as XBID in June 2018. SIDC is designed to increase the overall efficiency of intraday trading through effective competition, increased liquidity, and more efficient use of generation resources. Currently, the markets of 22 countries are coupled through SIDC: Austria, Belgium, Bulgaria, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Hungary, Latvia, Lithuania, Luxembourg, Netherlands, Norway, Poland, Portugal, Romania, Slovenia, Spain, and Sweden. With the inclusion of the Slovakian Nominated Electricity Market Operator (NEMO) OKTE and TSCNET shareholder SEPS, the TSO from Bratislava, the project also extends to Slovakia.

Within the framework structure of the SIDC, Local Implementation Projects (LIPs) provide for the expansion of the market coupling, and a new project has now been established as LIP 17. The NEMOs and TSOs from the Czech Republic, Hungary, Poland, and Slovakia – the TSCNET shareholders ČEPS, MAVIR, PSE, and SEPS – have proposed to implement SIDC across the borders between Slovakia-Czechia, Slovakia-Hungary, and Slovakia-Poland. The SIDC Steering Committee approved on 7 July and the LIP 17 roadmap will now be elaborated in more detail.

The SIDC solution comprises a common IT system with a shared order book, a capacity management module, and a shipping module. In addition to the TSOs mentioned above, the TSCNET shareholders 50Hertz, Amprion, APG, ELES, HOPS, TenneT, Transelectrica, and TransnetBW as well as the TSCNET customers Creos from Luxembourg and Energinet from Denmark are also part of SIDC.

A new LIP for the introduction of intraday trading across the borders of Czechia, Hungary, Poland, and Slovakia has been established under SIDC

Linkup
> See MAVIR press release (html)
> See PSE press release (html)
> See SEPS press release (html)

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Amprion Market Report shows encouraging trends

27.05.2020

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.

Amprion has published the Market Report 2020 for the CWE region (picture: Daniel Schumann / Amprion)

Linkup
> See Amprion press release, in German (html)
> Open Amprion market report (pdf, 6.97MB)
> Open Amprion market report summary, in German (pdf, 524.8kB)

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SIDC: Massive growth in trading volume

02.04.2020

European cross-border Single Intraday Coupling (SIDC) was introduced in June 2018 (then called XBID) to increase the overall efficiency of intraday trading through effective competition, increased liquidity, and more efficient use of generation resources. The overarching objective is the integration of the European energy market. In November 2019, SIDC was extended in a second go-live, so that currently the markets of 22 countries are coupled through SIDC: Austria, Belgium, Denmark, Estonia, Finland, France, Germany, Latvia, Lithuania, Luxembourg, Norway, the Netherlands, Portugal, Spain, Sweden (first go-live), and Bulgaria, Croatia, the Czech Republic, Hungary, Poland, Romania, and Slovenia (second go-live).

The Nominated Electricity Market Operators (NEMOs) from the seven countries of the second go-live report significant growth in trading volume in the coupled intraday market. The Hungarian NEMO HUPX, for example, recorded an average monthly trading volume of around 75,600MWh from December 2019 to February 2020 compared to 7,600MWh in the same period of the preceding year; in the Czech Republic, the volume has increased eightfold. The other NEMOs are also registering significant growth rates. A total of 36 million trades have been executed since SIDC first went live, and the system continues to operate reliably after the second wave.

The SIDC solution is based on a common IT system with a shared order book, a capacity management module and a shipping module. The TSOs cooperating in SIDC include the TSCNET shareholders 50Hertz, Amprion, APG, ČEPS, ELES, HOPS, MAVIR, PSE, TenneT, Transelectrica and TransnetBW, as well as the TSCNET customer Creos from Luxembourg and Energinet from Denmark. With the accession of the NEMO OKTE and further TSCNET shareholder SEPS, the TSO from Bratislava, the project has meanwhile been extended to Slovakia. A third go-live to expand continuous cross-border intraday trading to Greece and Italy is expected in the first quarter of 2021.

The seven new members of SIDC for a single integrated European intraday market are reporting enormous growth in trading volume

Linkup
> See Amprion press release (html)
> See PSE press release (html)

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Paper on MRC extension

26.03.2020

The so-called 4M Market Coupling Countries (4M MC) – the Czech Republic, Hungary, Romania and Slovakia – are to be connected to the Europe-wide Multi Regional Coupling (MRC) of the electricity market. This will introduce Single Day-Ahead Coupling across 23 European countries. The initiative to implement the MRC expansion is the DE-AT-PL-4M MC Project, also known as “Interim Coupling Project”. The relevant transmission system operators (TSOs) from Austria, Czechia, Germany, Hungary, Poland, Romania and Slovakia – the TSCNET shareholders 50Hertz, APG, ČEPS, MAVIR, PSE, SEPS, TenneT, and Transelectrica – are part of the project consortium.

The AT-PL-4M MC Project establishes implicit capacity allocation based on Net Transfer Capacity (NTC) at six borders (PL-DE, PL-CZ, PL-SK, CZ-DE, CZ-AT, HU-AT). The Nominated Electricity Market Operators (NEMOs) and TSOs participating in the DE-AT-PL-4M MC Project now have published an information paper for market participants containing key information on the project in a question and answer format. This information includes the main expected changes for the market, the planned communication methods with market participants and a high-level technical description of the market design to be implemented by the project.

The partners of the AT-PL-4M MC Project for integrating Czechia, Hungary, Romania and Slovakia into MRC have published an information paper

Linkup
> Open AT-PL-4M MC information paper provided by MAVIR (pdf, 732.98kB)

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ACER consultations on balancing market

20.02.2020

A core component of the European Energy Union is the integration of the national balancing markets into a pan-European market. To promote this essential objective, the European Commission Regulation establishing a Guideline for Electricity Balancing became effective in December 2017. The European transmission system operator (TSOs) are expected to work proactively towards this goal and have since responded to this expectation with transnational cooperation, proposals, innovative concepts and their implementation.

The Agency for the Cooperation of Energy Regulators (ACER) launched two public consultations on methodologies in line with the respective EU regulation. The first consultation concerns the way for establishing a list of standard products for capacity balancing of frequency restoration reserves and replacement reserves. This methodology provides the rules for efficient cross-border exchange, sharing and procurement of reserves. The second deals with the methodology for establishing a co-optimised allocation process of cross-zonal capacity for the exchange of balancing capacity or sharing of reserves. All interested parties are invited to submit their comments by 10 March 2020.

Before the results of the two consultations are published, ACER will organise a workshop in its premises in the Slovenian capital of Ljubljana on 26 February. This workshop will give stakeholders an insight into the procedures related to these consultations and into the discussions between ACER, the National Regulatory Authorities (NRAs) and the TSOs.

ACER has launched two public consultations on methodologies for the integration of balancing markets (picture of Europe from space by Alexander Gerst, ESA/NASA)

Linkup
> See ACER press release (html)
> Direct access to 1st consultation (html)
> Direct access to 2nd consultation (html)
> Visit ACER workshop webpage (html)

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Study on German-Polish TSO cooperation

16.01.2020

The two transmission system operators (TSOs) and TSCNET shareholders 50Hertz from Germany and PSE from Poland jointly conducted the “German-Polish Study on cooperation between TSOs PSE and 50Hertz in long-term and mid-term perspectives”, which now has been finalised. The study was supported by the respective national Ministries responsible for energy.

As its title suggests, the study is divided into an investigation of medium-term and long-term cooperation objectives. The mid-term part aims at improving the coordination of the operational planning processes. The following issues, among others, have been identified as important: improving the quality of forecasting of power flows at the German-Polish border and the coordinated use of cross-border remedial measures such as phase-shifting transformers as well as bilateral and multilateral redispatch. To better predict cross-border flows, PSE and 50 Hertz agreed to support the development of a flow-based methodology, and as far as the remedial measures are concerned, advanced software solutions are required. However, not only the development of an IT tool is needed here, but also advanced coordination and cost sharing in a region-wide mechanism.

For the long-term study, a modelling process carried out by the National Centre for Nuclear Research in Warsaw was used, which was consulted and monitored by experts from both TSOs. Using alternative scenarios, different time frames and market simulations, the main trends in German-Polish electricity exchange as well as future challenges for regional markets and networks were identified, such as interconnector capacities, growth of energy demands or deviating energy prices.

50Hertz and PSE have conducted a joint study on German-Polish TSO cooperation (picture: Andreas Vogel / CC BY-SA 4.0)

Linkup
> See PSE press release (html)
> See 50Hertz webpage on the study, in German (html)
> Open Executive summary (pdf, 538.47kB)

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TSO proposals on capacity balancing submitted

20.12.2019

In December 2017, the European Commission Regulation establishing a guideline for electricity balancing came into force. The European transmission system operators (TSOs) were given two years to prepare two proposals aimed at promoting market integration through the procurement and use of standard products for capacity balancing in an efficient, economic and market-based manner. Considering feedback from stakeholders, public consultations and workshops, these two proposals have now been submitted by the European Network of Transmission System Operators for Electricity (ENTSO-E) to the Agency for the Cooperation of Energy Regulators (ACER).

The “Proposal for a methodology for co-optimised allocation process of cross-zonal capacity for the exchange of balancing capacity or sharing of reserve” specifies how cross-zonal capacity should be allocated in a single optimisation process to bids for energy exchange as well as for the exchange of balancing energy or the sharing of reserves. The process suggested involves contracting on a day-ahead basis and meets the requirements of the “Clean Energy for All Europeans Package”.

The “Proposal for a list of standard products for balancing capacity for frequency restoration reserves and replacement reserves” details the minimum harmonisation criteria for the exchange of balancing capacity set by all TSOs. To respect the specific conditions of each region, additional characteristics may be defined and harmonised by two or more TSOs deciding to jointly provide balancing capacity.

ENTSO-E stresses that substantial work still needs to be done on the implementation and application of these proposals. Close interaction between neighbouring TSOs is essential for the establishment of balancing capacity cooperation.

ENTSO-E has submitted two TSO proposals on capacity balancing to ACER (picture showing Ljubljana, capital of Slovenia and home of ACER)

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Multi Regional Coupling expanded by the end of 2020

17.12.2019

The Multi Regional Coupling (MRC) of the European electricity market is to be substantially enhanced by connecting the so-called 4M Market Coupling Countries (4M MC), i.e. the Czech Republic, Hungary, Romania and Slovakia, to the Europe-wide MRC. This will establish Single Day-Ahead Coupling across 23 European countries.

In preparation for this market integration, the so-called Interim Coupling Project (DE-AT-PL-4M MC Project) was launched. It has now completed the design phase and is entering the implementation phase. This provides the Nominated Electricity Market Operators (NEMOs) and transmission system operators (TSOs) from Austria (APG), Germany (50Hertz, Amprion, TenneT, and TransnetBW), Poland (PSE) and the 4M MC countries (ČEPS, MAVIR, Transelectrica and SEPS) with a sound basis for announcing the MRC inclusion for the third quarter of 2020.

The AT-PL-4M MC Project introduces implicit capacity allocation based on Net Transfer Capacity (NTC) at six borders (PL-DE, PL-CZ, PL-SK, CZ-DE, CZ-AT, HU-AT). The competent National Regulatory Authorities (NRAs) welcome the progress made and the synergies from the project, which will facilitate the introduction of Flow-Based Market Coupling in the Core Capacity Calculation Region (Core CCR), which is the ultimate target.

The AT-PL-4M MC project for integrating Czechia, Hungary, Romania and Slovakia into MRC has entered the implementation phase.

Linkup
> See PSE press release (html)
> See SEPS press release (html)
> Open joint press release (pdf, 216.14kB)

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Single Intraday Coupling expanded

08.11.2019

Europe-wide intraday coupling is a key component for the completion of the European internal energy market. To help achieve this goal, the European cross-border Single Intraday Coupling (SIDC) solution was launched in June 2018 (then called XBID), standing for a significant step towards a single integrated continent-wide intraday market. A market of this kind increases the overall efficiency of intraday trading through effective competition, increased liquidity and more efficient use of generation resources across Europe. The SIDC solution is based on a common IT system with a common order book, a capacity management module and a shipping module.

The participating countries were initially Austria, Belgium, Denmark, Estonia, Finland, France, Germany, Latvia, Lithuania, Norway, the Netherlands, Portugal, Spain and Sweden. SDIC will now be expanded and continuous electricity trading will be possible across seven further countries: Bulgaria, Croatia, the Czech Republic, Hungary, Poland, Romania and Slovenia. Nominated electricity market operators (NEMOs) and the participating transmission system operators (TSOs) have confirmed the go-live of the extended SIDC and two additional local implementation projects on 19 November with first deliveries on 20 November.

TSOs already collaborating in SIDC include the TSCNET shareholders 50Hertz, Amprion, APG, TenneT, TransnetBW and Energinet as well as the TSCNET client Creos from Luxembourg. With the second wave, six more shareholders follow, namely ČEPS, ELES, HOPS, MAVIR, PSE and Transelectrica.

The SIDC solution for a single integrated European intraday market is expanded by seven countries, including Croatia, Czechia, Hungary, Poland, Romania and Slovenia

Linkup
> See Energinet press release (html)
> See PSE press release (html)
> See APG press release, in German (html)

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