5/1/2016 – Bucharest / Madrid / Oslo / Paris / Prague / Rome / Warsaw
The power exchanges of the Price Coupling of Regions (PCR) welcome Polish Power Exchange TGE and Romanian Power Exchange OPCOM as new partners to the PCR, further establishing PCR as the foundation for the single European day-ahead electricity market.
TGE and OPCOM join the existing power exchanges (EPEX SPOT, GME, Nord Pool Spot, OMIE and OTE) who have led the development of PCR. PCR now enables the coupling of day–ahead electricity markets in 23 countries representing over 90% of European power consumption.
TGE’s involvement in the PCR and its status as a full MRC project member are sound evidence of TGE’s determination to engage in both regional and as well as Pan-European integration activities. OPCOM’s participation in the successful launch of regional coupling project 4M MC and now the full involvement in the PCR, illustrates its dedication to contribute to the consecutive development of the single European energy market.
PCR was established to provide a single price coupling solution for the day-ahead power markets using a unique algorithm for the calculation of electricity prices across Europe (Euphemia), and an efficient allocation of cross-border capacity. This is crucial in order to achieve the overall EU target of a harmonised European electricity market; expected to increase liquidity, efficiency and social welfare.
PCR is based on three main principles: the use of a single algorithm, robust operation and individual Power Exchange accountability. The use of a single algorithm provides a fair and transparent determination of day-ahead electricity prices across Europe and has been developed by respecting the specific features of the various power markets across Europe. Consequently it optimises the overall welfare and increases transparency.
The PCR system service enables the exchange of anonymous orders and area-to-area transmission capacities among the Power Exchanges in order to calculate area prices as well as other reference prices and area-to-area cross border-transmission flows for all involved bidding areas.
PCR has created a governance structure based on a PCR Co-ownership Agreement and a PCR Cooperation Agreement which together provide a well proved contractual framework for the management of the cooperation among the PCR Exchanges.
By jointly developing a Pan-European market coupling algorithm and coordinating the governance structures between Power Exchanges, the Price Coupling of Regions initiative is a concrete and already operational solution for the achievement of the European Day-Ahead Target Model compliant with Regulation (EU) 2015/1222 of 24 July 2015 (establishing a guideline on Capacity Allocation and Congestion Management – CACM).
Aiming at the development of a full cooperation across Europe, the PCR initiative is open to any European Power Exchanges wishing to join.