Flow-based market coupling mechanism extended to all 13 countries of the Core capacity calculation region
BELGIUM - The flow-based mechanism represents an important step in the integration of the European energy market.
the use of the flow-based market coupling mechanism was extended to cover the day-ahead timeframe across all 13 countries of the Core capacity calculation region (CCR).
In Europe, there are several CCRs, within each of which cross-border capacity calculation is coordinated. This allows electricity to be transported from one country to another in such a way that supply and demand are kept in balance and price differences between countries are leveled out, while also generating additional socio-economic welfare.
According to Elia Group, this process is enhanced by the flow-based mechanism, since it takes into account congestions across the whole of the regional grid. This mechanism optimizes the commercial exchanges of electricity that need to happen across national borders and different regions.
The flow-based mechanism represents an important step in the integration of the European energy market, says Elia Group. The latter is essential for excess renewable energy to be efficiently shared across borders, and so is crucial for the success of the energy transition.
Source: Elia Group
