In November 2023, ACER received a proposal from Nominated Electricity Market Operators (NEMOs) for amending the ACER’s 2020 methodology for the price coupling algorithm and the continuous trading matching algorithm.
The methodology sets the regulatory framework for:
- the algorithms used for matching orders; and
- allocating cross-zonal capacities in the European day-ahead and intraday electricity markets.
After consulting with stakeholders and hosting two webinars, ACER made revisions to the NEMOs’ initial proposal. Today, with its Decision 11-2024, ACER has adopted the amended methodology.
What’s new?
The updated methodology, in particular the day-ahead coupling algorithm, enables the investigation of a co-optimised allocation of cross-zonal capacity (‘co-optimisation’). This approach would allow the efficient sharing of the available cross-zonal capacity between energy trading and exchanges linked to balancing services, facilitating the integration of balancing capacity markets.
Research will identify the best co-optimisation approach
ACER’s Decision requires NEMOs, in collaboration with Transmission System Operators (TSOs), to conduct the necessary research and development (R&D) activities to fully understand the technical feasibility, impacts, and implications of integrating co-optimisation into the price coupling algorithm. This R&D work will be structured around four milestones and is expected to finish in November 2026.
What are the next steps?
After the required R&D activities are finalised, ACER will analyse the findings and discuss their implications with NEMOs and TSOs. Based on these discussions and if required, ACER may request further amendments to the algorithm methodology and related Terms, Conditions and Methodologies (TCMs).
