Price Coupling of Regions (PCR) is the project of European Power Exchanges to develop a single price coupling solution to be used to calculate electricity prices across Europe respecting the capacity of the relevant network elements on a day-ahead basis. This is crucial in order to achieve the overall EU target of a harmonised European electricity market. The integrated European electricity market is expected to increase liquidity, efficiency and social welfare. PCR is open to other European power exchanges wishing to join.
What is PCR
PCR is based on three main principles: a single algorithm, robust operation and individual power exchange accountability.
- The common algorithm gives a fair and transparent determination of day-ahead electricity prices and a net position of a bidding area across Europe. The algorithm is developed respecting the specific features of the various power markets across Europe and the electricity network constrains. It optimises the overall welfare and increase transparency.
- The PCR process is based on decentralised sharing of data, providing a robust and resilient operation.
- The PCR Matcher and Broker service enables exchange of anonymised orders and electricity network constrains among the power exchanges to calculate bidding zone prices and other reference prices and net positions of all included bidding areas.
Project is currently being operated by seven Power Exchanges: EPEX SPOT, GME, Nord Pool, OMIE, OPCOM, OTE and TGE; PCR is used to couple the following countries: Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Hungary, Italy, Latvia, Lithuania, Luxembourg, the Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and UK.
The initiative started in 2009 and the PCR parties signed the PCR Cooperation Agreement and PCR Co-ownership Agreement in June 2012.
One of the key elements of PCR project is the development of a single price coupling algorithm, which adopts the name of EUPHEMIA (acronym of Pan-European Hybrid Electricity Market Integration Algorithm). It is used to calculate energy allocation, net positions and electricity prices across Europe, maximising the overall welfare and increasing the transparency of the computation of prices and power flows resulting in net positions.
Euphemia Stakeholder Forum 11 January 2016
The power exchanges of the Price Coupling of Regions Initiative (PCR) hosted the PCR Euphemia Forum for the project stakeholders in Brussels on 11th January. The main topics discussed were the current concept of the Euphemia algorithm and possibilities and proposals for the short-term and mid-term development.
For more information please see the presentations below: