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16.10.2009 00:00

CWE and Nordic TSOs agree on a joint declaration on Market Coupling principles

In order to support and accelerate the development of the internal electricity market, the twelve Transmission System Operators (TSOs) of the Central West Europe (CWE) and Nordic Regions agreed on October the 8th, 2009 on a Joint Declaration representing their common view of the main Market Coupling principles for the day-ahead markets.Market coupling is a method where TSOs and power exchanges cooperate in matching day-ahead energy trades and cross-border transmission capacities in one integrated process. This ensures an efficient use of interconnection capacity and gives the right price signals and flows across the coupled area.

The twelve TSOs involved are Amprion (DE), Creos (Lux), Elia (BE), EnBW TNG (DE), Energinet.dk (DK), Fingrid (FI), RTE (FR), Statnett (NO), Svenska Kraftnät (SE), TenneT (NL), transpower (DE), Vattenfall Europe Transmission (DE). Together with power exchanges, they are currently pursuing a number of local market coupling projects in the CWE and Nordic region: CWE, EMCC and NorNed. These initiatives are temporary market harmonisation steps towards a more European solution.

The parties agree to pursue a single price coupling mechanism across their area, creating one market region. The twelve TSOs consider such a mechanism as the most efficient, objective, non-discriminatory and transparent solution for allocating cross-border capacity, thus enhancing social welfare.

By the end of 2009, the TSOs aim to set out an outline for the high level market design, organisation, roles, governance principles and the requirements for the coordinated matching. The parties currently develop a migration plan and a road map. A project organisation set up under the umbrella of the ENTSO-E Market Committee by the North-West Regional Group has started working on these issues immediately.

The TSOs will soon start a dialogue with all relevant stakeholders, including power exchanges, market parties, national regulatory authorities, and the European Commission.

The Joint Declaration from the twelve TSOs can be found here.
For further information, please contact:
Chairman of the ENTSO-E Regional Group North-West,
Lene Sonne, Vice President, Electricity Market, Energinet.dk, Denmark
Tel. +45 76 22 44 18
Anders Berg Skånlund, Project Manager
Tel. +47 95 76 83 13 Source: ENTSO-E, Press Release, October 15th, 2009