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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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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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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Swissgrid adjusts export capacities to Germany

03.09.2019

All participants in the integrated European electricity market have agreed on common definitions of the transmission capacity for international electricity exchanges, including the Net Transfer Capacity (NTC). The NTC is an important basis to anticipate and plan cross-border transactions. Thus, the establishment of NTCs is one of the essential tasks of the transmission system operators (TSOs) to enable market participants to carry out energy trading without jeopardising grid stability. TSCNET shareholder Swissgrid, the Swiss TSO, along with the neighbouring TSOs, determines the NTC values on all four Swiss borders on an annual, monthly and daily basis.

In the summer of 2019, Swissgrid had to reduce the NTC on the national northern border to Germany to ensure reliable grid operation. Originally, a static NTC value of 4,000 MW for exports from Switzerland to Germany had been defined with the neighbouring German TSOs. However, the load flows between the two countries have changed in the last two years. Situations in which Germany is dependent on imports, especially from Switzerland, occurred increasingly in the summer months. As a result, the previously typical north-south flow towards Italy reversed to a south-north flow towards Germany.

Other simultaneous factors also affected the Swiss grid load, such as the high level of Swiss hydropower production, the inspection times of the Swiss nuclear power plants and the seasonal decommissioning and construction work on the grid. In combination with the growth in exports to Germany, this led to significantly higher load flows in the Swiss 220kV grid, which were additionally reinforced by increased export opportunities from France to Germany through Flow-Based Market Coupling (FMBC) in the Central Western Europe (CWE) region and transit through Switzerland.

In fact, exports of up to 8,000MW were recorded on several days this summer. For this reason, Swissgrid, together with its neighbouring TSOs, has limited the NTC values for a secure grid operation. Swissgrid continues to cooperate closely with these TSOs to optimise cross-border capacity. The current static value of 4,000MW is expected to be substituted by seasonally adjusted dynamic NTC values. However, due to the implementation of the “Clean Energy for All Europeans Package” (CEP) of the European Commission, it is not yet possible to predict exactly how the NTC values at Switzerland’s northern border will develop.

Swissgrid adjusts the NTC values for electricity flows at the Swiss-German border

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> See Swissgrid news release (html)

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High-Level Market Design finalised

11.06.2019

It was only at the end of 2018 that the national regulatory authorities of Austria, Germany, Poland and the so-called 4MMC countries (Czechia, Hungary, Romania, and Slovakia) requested the initiation of the interim project for an NTC-based market coupling (“Net Transfer Capacities”) between these countries. The parties involved in the DE-AT-PL-4MMC (“Interim Coupling”) project have completed the High-Level Market Design to be implemented and the national regulatory authorities have confirmed their support for the continuation of the project. This involves a total of eight TSOs that are shareholders and customers of TSCNET Services: 50Hertz (Germany), APG (Austria), ČEPS (Czechia), MAVIR (Hungary), PSE (Poland), SEPS (Slovakia), TenneT (Germany), and Transelectrica (Romania).

The project aims to couple 4MMC and Poland as well as Multi-Regional Coupling (MRC) through the introduction of NTC-based implicit allocation on six borders (PL-DE, PL-CZ, PL-SK, CZ-DE, CZ-AT, HU-AT) and the implementation of a Single Day Ahead Coupling (SDAC). The project envisages a step-by-step transition at the above-mentioned boundaries from the current NTC-based explicit allocation to the flow-based implicit allocation to be implemented in the framework of the CoreFlow-Based Market Coupling Projectas target solution required by regulation. The Interim Coupling significantly contributes to the regional market integration and brings benefits to the market. The current planning envisages the go-live of the interim coupling for the second quarter of 2020.

The parties involved in the DE-AT-PL-4MMC project have completed the High-Level Market Design

Linkup
> Open joint press release (pdf, 331kb)

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