Research on the Flow-Based Market Coupling for the Northwest European electricity market
At the request of the Dutch Authority for Consumers and Markets. Published on 23 April 2015
The Dutch regulator ACM requested Berenschot to conduct a study regarding market and competition issues under Flow-Based Market Coupling (FBMC). Initially, a CWE Market Coupling based on Available Transmission Capacity (ATC) was achieved in 2010. This has been highly successful with improvements in price convergence and economic surplus in the CWE area. Switching from the existing Market Coupling to a method based on Flow-Based principles is expected to have added advantages as well as potential drawbacks in these respects, especially in situations of non-convergence. The study focused on the competition aspects of FBMC, i.e. the loss of partial convergence after FBMC and the consequences of flow factor competition for parties in different countries. The positive resolution by the ACM and the Berenschot report was published on 23 April 2015. The full report (in English) is available here.