European Market Coupling Company

Logotype European Market Coupling Company.
The synchronous grids of Europe.

European Market Coupling Company, EMCC or emcc, was a provider of congestion management services for cross-border electrical interconnectors in Northern and Central Western Europe.

EMCC was a joint venture of five transmission system operators (TSOs) and electricity exchanges (PXs) in North-Western Europe: Energinet.dk, TenneT TSO GmbH, 50Hertz Transmission GmbH, European Energy Exchange AG, and Nord Pool Spot AS. It was established in Hamburg, Germany, in August 2008 and discontinued operations in 2014 following the implementation of the North-Western Europe (NWE) market coupling initiative.[1]

Purpose and functioning

The purpose of EMCC was to promote an efficient electricity market between regions by using market coupling and to promote the integration of a Europe-wide wholesale electricity market.

EMCC calculated optimal electricity flows, based on available transmission capacities (ATC) provided by the TSOs and anonymous order books (OBK) from the power exchanges. Afterwards, EMCC placed market coupling bids at the PXs in order to achieve a power flow from the low-price area into the high-price area. Subsequently, EMCC created schedules and carried out the financial settlement with the PXs. EMCC's calculation algorithm was based on an economic welfare maximization criterion.[2]

History and development

Market coupling on two interconnectors between Denmark and Germany first started in 2008 but was paused after ten days when it became clear that the algorithms used by EMCC and the PXs were not perfectly aligned.[3]

Danish-German market coupling was relaunched successfully in November 2009 using a revised convex optimizer algorithm. The Baltic Cable interconnector between Sweden and Germany was integrated into EMCC's coupling system in May 2010.[4]

In January 2010, EMCC was tasked by TSOs and PXs in the Central Western European (CWE) and Nordic regions to develop a system to integrate CWE price coupling and Nordic market splitting. Known as Interim Tight Volume Coupling (ITVC), this enhanced scheme went live in November 2010.[5][6]

On 9 November 2010, day-ahead market coupling for the extended region was launched, covering Belgium, France, Luxembourg, Germany, the Netherlands, the Nordic region, and Estonia. Representing a market of 1,816 TWh (approximately 60% of European electricity consumption), it constituted the world's largest single power market at the time.[7] The NorNed cable between Norway and the Netherlands was integrated on 12 January 2011.[8]

Dissolution and succession

On 4 February 2014, European power exchanges and TSOs launched the North-Western Europe (NWE) day-ahead market coupling project.[9] The NWE project implemented full price coupling using the Price Coupling of Regions (PCR) algorithm (EUPHEMIA), which replaced volume-coupling methods across cross-border interconnectors.[1]

Because the NWE price coupling project rendered EMCC's dedicated volume coupling services redundant, EMCC ceased operations in 2014 and was placed into liquidation (in Liquidation, GmbH i.L.).[1][10] The NWE market coupling area subsequently expanded into Multi-Regional Coupling (MRC) and was ultimately integrated into the pan-European Single Day-Ahead Coupling (SDAC) framework.[9]

See also

References

  1. 1 2 3 Annual Report 2014: Growing together (PDF) (Report). EPEX SPOT / EEX. 2015. p. 23. Retrieved March 15, 2024.
  2. ↑ EMCC. EMCC Daily Operations Archived 2010-12-06 at the Wayback Machine, Retrieved: 3 October 2010.
  3. ↑ Vivien Neubert & Enno Böttcher. The first days of Nordic-German market coupling Archived 2016-01-31 at the Wayback Machine Nord Pool Spot, 11 November 2009. Retrieved: 3 October 2010.
  4. ↑ EMCC. EMCC Press Release Market coupling started on Baltic Cable Archived 2011-06-02 at the Wayback Machine, 11 May 2010. Retrieved: 3 October 2010.
  5. ↑ EMCC. Map European Market Coupling Company Deprecated link archived 2013-01-28 at archive.today, Retrieved 16 February 2011
  6. ↑ EMCC. Confirmation of launch date Archived 2011-07-14 at the Wayback Machine, 24 September 2010. Retrieved: 3 October 2010.
  7. ↑ Energinet.dk. A decisive step towards a single European Electricity Market Archived 2010-12-21 at the Wayback Machine, 9 November 2010. Accessed: 13 December 2010.
  8. ↑ EMCC. Next decisive step towards a single European Electricity Market Archived 2011-06-03 at the Wayback Machine, 12 January 2011. Accessed: 16 February 2011.
  9. 1 2 "European Market Coupling". EPEX SPOT. Retrieved March 15, 2024.
  10. ↑ Shareholding structure of Deutsche Börse Group as of 1 January 2015 (PDF) (Report). U.S. Securities and Exchange Commission. 2015. Retrieved March 15, 2024.
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