Market coupling of South East Europe in the electricity sector

Abstract

Market coupling with the mechanism of implicit auctions is a new and increasingly employed model of coupling of different national electricity markets, where national market operators remain independent legal persons. ERGEG, in its efforts to develop a more integrated European energy market, sees the role of European regional connections as essential for the development of a liberalised market. Building of a common European market in the electricity sector requires a special coherent strategy, considering the characteristics of electricity as a commodity on the market, but also as a physical phenomenon. Consequently, activities are taking place based on a three-fold strategic approach: the first one is a legally binding contract defining key objectives with timeframes, the second one is the selection of a market model deriving from the best practice which will enable regional harmonisation and the third one is establishment of a suitable coordinating and monitoring body.