Plugged In: the energy news podcast Flow-based market coupling – what's all the fuss about?
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Nov 29, 2024 Frank Boerman, a Process Specialist at TenneT, and Priyanka Shinde, Nordic Market Expert at Montel News, dive into the complexities of flow-based market coupling in the Nordic power market. They discuss the transition from conventional methods to this new system, highlighting its potential for greater efficiency. The duo addresses forecasting challenges, pricing discrepancies, and the intricate dynamics of the electricity market. They also emphasize the need for transparency in data and market operations to enhance stability and stakeholder confidence.
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Flow-Based vs. ATC
- Flow-based market coupling calculates capacity by considering grid interdependencies, unlike the older ATC system which treated borders in isolation.
- This allows for more efficient grid usage and higher capacity release.
Delayed Nordic Implementation
- The Nordics intended to implement flow-based market coupling in 2016 but faced IT problems and coordination challenges, causing delays.
- These recurring issues led to frequent news of postponement.
Swedish Reaction
- Flow-based coupling has led to higher prices in southern Sweden, sparking criticism from industry and politicians, including calls for a halt.
- Increased flows from north to south highlight benefits, but counterintuitive flows and price prediction difficulties raise concerns.