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Renewables Day-Ahead Market Coupling: Driving renewable integration

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Day-Ahead Market Coupling: Driving renewable integration


EPEX SPOT’s coupled markets have proven to be a key tool for limiting the potential price impacts of renewable energy. By fully optimizing the utilization of interconnectors, national surpluses and deficits are mitigated in the coupled markets, providing more resilience against supply and demand disturbances. Day to day or seasonal variations in renewable production can be counterbalanced between zones, and converging prices smooth both positive and negative peaks. The introduction of the Market Coupling in Central Western Europe (CWE) in 2010 coincided with the addition of significant amounts of renewable energy on EPEX SPOT’s markets, as German transmission system operators began to trade energy produced under the EEG feed-in tariff on EPEX SPOT’s Day-Ahead and Intraday markets. Furthermore, since 2012 producers have increasingly sold their renewable energy directly over our markets. On 4 February 2014, CWE was replaced by the Price Coupling in North-Western Europe (NWE), adding Great Britain, the Nordic and Baltic countries.
 
 


 

The German Regulator – Bundesnetzagentur – stated in its evaluation report 2012 that the spot exchange has proven to be a suitable instrument for the market integration of renewable energy. While leading to increased liquidity and enhanced transparency, this new form of marketing renewable electricity has not led to significant break in price trends or increase of volatility. The number of negative (or positive) price peaks in Germany (or France) experienced during the past two years has decreased in comparison to 2009 figures, reflecting the ability of coupled markets with sufficient liquidity to absorb the volumes of renewable energy.


To learn more about how flexible Intraday markets help with trading renewables on the Exchange, visit the following page.

 

 
 

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