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One year after signing a Memorandum of Understanding* power exchanges and transmission system operators in Belgium, France, Germany, Luxemburg and the Netherlands have achieved significant progress towards coupling the Central Western European electricity markets and improved coordination for an increased security of supply.
Market coupling will be used to create Europe’s largest regional electricity market. It will allow for closer connection of Central Western Europe’s day-ahead electricity markets as well as for a more efficient use of existing cross-border power lines. It will thus simultaneously contribute to increase competition in electricity wholesale prices and to enhance security of supply.
One year after the Memorandum of Understanding was signed, the following milestones have been achieved:- The system to determine the available capacity on the “electricity highways” has been designed.
- The design of the central calculation unit has been created. This unit will economically optimise the electricity exchanges between the five countries.
- An orientation study on the conceptual framework of the project and a progress report have been completed and discussed with regulators and market participants.
- It was agreed to harmonize gate closure times for the power exchanges.
- In order to meet market needs the project parties have recently completed a series of consultative meetings with market participants and regulators. About 200 traders, power generators and large industrial consumers from all over Europe participated in lively discussions and provided constructive input.
The project will complete its design phase in the coming months. The implementation of market coupling is scheduled for 2009.
As far as security of supply is concerned significant results have been obtained:- A first regional transmission plan, based on national plans has been presented to the governments.
- A harmonised incidents classification scale has been defined and experimented in 2007.
- A road map for an improved System Adequacy Forecast has been delivered by the end of 2007 and is being implemented in 2008.
- Information exchanges between control rooms have been developed to enhance system security
“The project is a great example of successful cooperation in the European electricity sector. There is still a lot of work ahead of us but the first year of our joint project has been a remarkable success. We will keep the momentum to build an integrated electricity market in Central Western Europe which will increase social welfare to the benefit of all”, say Jean-François Conil-Lacoste and Frank Vandenberghe, chairmen of the Project Steering Committee.
*On June 6th, 2007, representatives of five governments, their respective regulators, the concerned power exchanges and transmission system operators signed the Memorandum of Understanding on Electricity Market Coupling and Security of Supply in Central Western Europe.
