Plugged In: the energy news podcast
Flow-based market coupling – what's all the fuss about?
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.
27:52
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Quick takeaways
- The flow-based market coupling system enhances grid utilization and capacity allocation in the Nordic energy sector, offering potential market benefits despite initial challenges.
- Critics of the new system express concerns about increased prices and complexity for smaller companies, emphasizing the need for stakeholders to adapt and understand the changes.
Deep dives
Introduction of Flow-Based Market Coupling
Flow-based market coupling is a new system implemented in the Nordic energy sector aimed at improving grid utilization and capacity allocation across borders. Unlike the previous Available Transfer Capacity (ATC) system, which provided a static capacity number per border, flow-based coupling calculates a matrix of possibilities that consider interdependencies across the grid. This method allows for adaptive capacity allocation, potentially enabling greater market access and efficiency in energy trading. The system was developed through trials among several European TSOs and has recently expanded its use to the Nordic region after a series of delays due to IT challenges.
