Benefits of Market Coupling in Terms of Social Welfare
Abstract
The goal of having an internal electricity market is a priority of the European Commission and Council. The European market-coupling project which is promoted by power exchanges and working together with transmission system operators has implemented a pan-European market coupling algorithm that integrates the day-ahead markets of 17 countries covering around 70% of European electricity demand.
Currently, the NWE and SWE regions are already fully coupled and this allows simultaneous calculation of electricity prices and cross-border flows across regions. The direct consequences are:
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