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Market coupling on France, Austria and Slovenia

Benefits up to 4 € billion per year

Market coupling began in February on three out of the five Italian borders (France, Austria and Slovenia). These four national electricity markets are “coupled” by synchronising the respective Electricity Exchanges and coordinating the respective TSOs, to become included in the broader Multi-Regional Coupling (MRC), which already connects most of the electricity markets of the EU. Market coupling  simplifies  access to the market for operators and guarantees allocation efficiency, providing the correct price signals: in fact, it guarantees that when an interconnection’s transport capacity is not being fully utilised, the prices for electricity in the bordering markets are identical, whereas if capacity is saturated, prices differ, with electricity flowing from the market with the lower price towards the one with the higher price. In this regard, the benefits to the end consumer result from a more efficient use of cross-border infrastructure. The result falls within the context of the broader integration project in European electricity markets, with the objective of increasing the European Union’s competitiveness.

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