On 24 November 2023, ACER received a proposal from all Nominated Electricity Market Operators (NEMOs) for amending the methodology for the price coupling algorithm and the continuous trading matching algorithm.
What is the methodology about?
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. Thanks to a coordinated calculation of prices and flows, which is referred to as market coupling, available cross-zonal capacity is used more efficiently and price differences are reduced.
Why amend the methodology?
Amending the methodology, in particular the day-ahead coupling algorithm, is needed to enable a co-optimised allocation of cross-zonal capacity for the exchange of balancing capacity or sharing of reserves. Co-optimisation facilitates the integration of the balancing capacity markets and allows for a more efficient use of cross-zonal capacity.
What are the next steps?
ACER will run a public consultation and host a public workshop to ensure stakeholders’ views are considered in the decision-making process.
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The public consultation will run from 18 January to 15 February 2024.
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The public workshop is planned for 1 February 2024.
ACER expects to decide on the amended methodology by 24 May 2024.
