emcc: News

On 10 May 2010, market coupling was introduced on Baltic Cable. The total electricity flow traded between Sweden and Germany for delivery days 11th and 12th of May was 21,469 MWh. The average price difference between Sweden, traded on Nord Pool Spot, and Germany, traded on EPEX Spot, ranged around 3.20 €/MWh.

EMCC is applying the market coupling mechanism by buying and selling on the two power exchanges on behalf of Baltic Cable AB. Baltic Cable remains the owner of the capacity. The determination of the power flow follows the price signals on the two exchanges, thus leading to a flow from the low price area to the high price area. This leads to an optimal utilisation of available capacity, improving the efficiency of cross-border congestion management.

In order to achieve this, many contractual and technical issues had to be solved by Baltic Cable AB, EMCC and the involved power exchanges. Moreover, extensive tests were carried out to prove the functionality of the coupling mechanism on the cable.

Before the launch of market coupling on Baltic Cable, EMCC has already carried out day-ahead congestion management services on the two interconnectors between Denmark and Germany. With the introduction of market coupling on Baltic Cable, EMCC’s market coupling is now covering all interconnectors between the Nordic market and Germany.

Baltic Cable is a 600 MW HVDC (high voltage direct current) interconnector between Sweden and Germany. It is operated by the merchant company Baltic Cable AB. Baltic Cable AB has decided to introduce market coupling on a voluntary basis.

The interconnector between Denmark East and Germany was set out of operation for maintenance reasons. It is estimated to restart operation on 11 May, approximately 12 a.m.

The cable connects price areas DK2 and Germany and the grids operated by Energinet.dk and 50Hertz Transmission GmbH.

Baltic Cable AB and European Market Coupling Company GmbH (EMCC) have signed an agreement to introduce market coupling on Baltic Cable. The target date to start market coupling is Monday, 10 May 2010 (for delivery on 11 May 2010).

EMCC will apply the market coupling mechanism by buying and selling on the two power exchanges, Nord Pool Spot and EPEX Spot, on behalf of Baltic Cable AB. Baltic Cable remains the owner of the capacity on the interconnector.

Baltic Cable is a 600 MW interconnector between Sweden and Germany. Baltic Cable AB is a merchant company and has decided to introduce market coupling on a voluntary basis. Market coupling, also referred to as implicit auction, is a mechanism that leads to optimal utilisation of the available capacity in the day-ahead phase. The aim is to improve market efficiency of cross-border congestion management.

Before the launch of market coupling on Baltic Cable, EMCC has already carried out day-ahead congestion management services on the two interconnectors between Germany and Denmark, DK West (950 MW north and 1,500 MW south) and DK East (550 MW north and south).