Market Coupling and the CWE Project

Abstract

The article copes with the ongoing effort to es-tablish implicit auctions to allocate transmission capacity on cross-border interconnectors in the power grid. By the means of implicit auctions (in contrast to explicit auctions), cross-border capacities are included in the clearing of local power exchanges. Concerning the day ahead auction, 'mar-ket coupling' plays an important role. Market coupling con-nects (formerly often national) electricity markets, simpli-fying cross-border trade. One of the main drivers of mar-ket coupling projects is the pursuit of European market inte-gration i.e. allowing for convenient cross-border trade. The other reason is the perception that explicit auctions of trans-mission capacity (in addition to energy auctions which are often performed later) do sometimes lead to sub-optimal re-sults. The objective function of market coupling is the max-imisation of total welfare of all connected markets. Fur-ther to the explanation of different market coupling models (also regarding capacity calculation), the current develop-ment in Europe is wrapped up—including the CWE market coupling (Central Western Europe) project. The CWE mar-ket coupling is announced to start in fall 2010, coupling the day-ahead electricity markets of Belgium, France, Germany, Luxembourg and the Netherlands. Market Coupling und das CWE-Projekt Zusammenfassung Der vorliegende Artikel beschäftigt sich mit aktuellen Bestrebungen zur impliziten Bewirtschaf-tung von Grenzkuppelstellen im Stromnetz. Durch implizi-te Auktionen (im Gegensatz zu expliziten Auktionen)