European Market Coupling Company, EMCC or emcc, is a provider of congestion management services for cross-border

electrical Electricity is the set of physical phenomena associated with the presence and motion of matter that has a property of electric charge. Electricity is related to magnetism, both being part of the phenomenon of electromagnetism, as described by ...

interconnectors. This is done by means of ''market coupling'', in particular ''tight volume coupling''. EMCC is a

joint venture A joint venture (JV) is a business entity created by two or more parties, generally characterized by shared ownership, shared returns and risks, and shared governance. Companies typically pursue joint ventures for one of four reasons: to acces ...

of the following

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s (TSOs) and electricity exchanges (PXs) in North-Western Europe:

Energinet.dk Energinet is the Danish national transmission system operator for electricity and natural gas. It is an independent public enterprise owned by the Danish state under the Ministry of Climate and Energy. Energinet has some 1150 employees, a ...

, TenneT TSO GmbH, 50Hertz Transmission GmbH,

European Energy Exchange European Energy Exchange (EEX) AG is a central European electric power and related commodities exchange located in Leipzig, Germany. It develops, operates and connects secure, liquid and transparent markets for energy and related products, incl ...

AG, Nord Pool Spot AS. It was established in

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Germany Germany,, officially the Federal Republic of Germany, is a country in Central Europe. It is the second most populous country in Europe after Russia, and the most populous member state of the European Union. Germany is situated betwe ...

, in August 2008.

Purpose and functioning

The purpose of EMCC is to promote an efficient

electricity market In a broad sense, an electricity market is a system that facilitates the exchange of electricity-related goods and services. During more than a century of evolution of the electric power industry, the economics of the electricity markets had un ...

between regions by using market coupling and to promote the integration of a Europe-wide wholesale electricity market. EMCC calculates optimal electricity flows, based on available transmission capacities (ATC) from the TSOs and anonymous order books (OBK) from the exchanges. Afterwards, EMCC places 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 creates schedules and carries out the financial settlement with the PXs. EMCC's calculation algorithm is based on the

economic welfare The welfare definition of economics is an attempt by Alfred Marshall, a pioneer of neoclassical economics, to redefine his field of study. This definition expands the field of economic science to a larger study of humanity. Specifically, Marshall's ...

criterion.

Development

Market coupling on two interconnectors between

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and Germany first started in 2008 and was stopped after ten days as it became clear that the algorithms used by EMCC and the PXs were not perfectly aligned. Danish-German market coupling was relaunched successfully in November 2009 with a revised convex optimiser as algorithm.

Baltic Cable The Baltic Cable is a monopolar HVDC power line running beneath the Baltic Sea that interconnects the electric power grids of Germany and Sweden. Its maximum transmission power is 600 megawatts (MW). The Baltic Cable uses a transmission voltag ...

between Sweden and Germany was integrated in May 2010. In January 2010, EMCC was asked by TSOs and PXs in the Central Western European (CWE) and Nordic region to develop a system to integrate CWE price coupling and Nordic market splitting. The new scheme is called Interim Tight Volume Coupling (ITVC). It is based on the existing Nordic-German tight volume coupling and is a further enhancement. On 9 November 2010, day-ahead market coupling for the extended region was launched. This region covers

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France France (), officially the French Republic ( ), is a country primarily located in Western Europe. It also comprises of Overseas France, overseas regions and territories in the Americas and the Atlantic Ocean, Atlantic, Pacific Ocean, Pac ...

Luxembourg Luxembourg ( ; lb, Lëtzebuerg ; french: link=no, Luxembourg; german: link=no, Luxemburg), officially the Grand Duchy of Luxembourg, ; french: link=no, Grand-Duché de Luxembourg ; german: link=no, Großherzogtum Luxemburg is a small lan ...

, the

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, the Nordic region and

Estonia Estonia, formally the Republic of Estonia, is a country by the Baltic Sea in Northern Europe. It is bordered to the north by the Gulf of Finland across from Finland, to the west by the sea across from Sweden, to the south by Latvia, a ...

. It represents the world's largest single power market of 1,816

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, about 60% of European power consumption. The second step adding the

NorNed NorNed is a long high-voltage direct current submarine power cable between Feda in Norway and the seaport of Eemshaven in the Netherlands, which interconnects both countries' electrical grids. It was once the longest submarine power cable in the ...

cable between Norway and the Netherlands started on 12 January 2011. The TSOs between Finland and Spain are preparing to operate a common electricity market in November 2013, and in May 2014 Spain and Portugal were included.

Italy Italy ( it, Italia ), officially the Italian Republic, ) or the Republic of Italy, is a country in Southern Europe. It is located in the middle of the Mediterranean Sea, and its territory largely coincides with the homonymous geographical re ...

was added in February 2015.ITALIAN BORDERS SUCCESSFULLY COUPLED
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References

{{Reflist, 2 Organizations established in 2008 Electric power in Europe Companies of Europe

Purpose and functioning

Development

See also

References