HUPX

Energy Business Motion

History of the market coupling

The approval of the Third Energy Package (Regulation (EC) No 714/2009) serves as a basis for the implementation of the market coupling and provides regulatory background for the preparation of the Network Codes for the purpose of cross border trading of electricity and gas. Main objectives of the Energy Package are maintaining the security of energy supply, increasing competitiveness and ensuring that all consumers can purchase energy at affordable prices. For the purpose of the above written EU published the Commission Regulation (EU) 2015/1222 of 24 July 2015 establishing a guideline on capacity allocation and congestion management (CACM). The target model for the electricity markets is described in Article 3 of CACM. This is the establishment of the price coupling based on implicit capacity allocation with a single algorithm. These are the Single Day-ahead Coupling (SDAC) and the Single Intraday Coupling (SIDC). HUPX, as an active participant of the European market, makes big effort to execute these aims through the following steps.

Day-ahead market

Before the launch of CZ-SK-HU MC only the CZ-SK day-ahead (D-1) market-coupling was functional in the region, organized by OTE (Czech Electricity and Gas Market Operator) and OKTE (Slovakian Short-term electricity Market Operator) as power market organizers (PX) and supported by ČEPS and SEPS as the respective transmission system operators (TSO). During this period, Hungary was not involved in any market coupling.

Hungary joined the CZ-SK market coupling on 11 September 2012. As a result, the operation of an ATC based day-ahead implicit allocation started on HU-SK border as well.

Romania, as an EU member state, has also been committed to meet the requirements and expectations. Romanian NRA, TSO and PX sent their Letter of Intent on 6 December 2011. to emphasize their willingness to join the CZ-SK-HU MC. In the planning period the IT framework and processes were created on the basis of the PCR market coupling. Later this method was defined as the starting point of the Single Day-Ahead Coupling (SDAC). The 4M market coupling was successfully implemented on 19 November 2014.​​

A further step towards the execution of the day-ahead target model (SDAC) was the merging of the two existing market coupling the 4M MC and the Multi regional Coupling (MRC). In accordance with the regulation, merging of the two regions should be based on the target model so on the flow based capacity calculation. For that purpose, the NWE-CEE Flow Based Market Coupling project was established as an early implementation project. Based on the decision of ACER (no.: 06/2016) the project has been transformed to Core Flow based Market Coupling (Core FB MC) with the participation of the following member states’ transmission system operators and nominated electricity market operators: Austria, Belgium, Czechia, France, Netherland, Croatia, Poland, Luxembourg, Hungary, Germany, Romania, Slovakia and Slovenia (APG, EXAA, EMCO, EPEX SPOT, ELIA, CEPS, OTE, RTE, TENNET BV., HOPS, CROPEX, PSE, TGE, MAVIR, HUPX, 50Hertz, Amprion, EnBW, TENNET GmbH, OPCOM, and Transelectrica). More detailed information can be available here.

Due to the complexity of the Core FB MC project, the national regulatory authorities decided to establish an NTC based coupling project on 21.12.2018. The goal of the initiative is to merge the two existing regions earlier than the Core FB MC and to provide more efficient capacity allocation and higher economic welfare to the market as soon as possible. More detailed information can be available here.

Intraday market

HUPX is currently working on the accomplishment of the intraday market coupling, therefore participating in the implementation of the XBID solution defined as the target model of the intraday market coupling.

XBID was originally a cooperation between six power exchanges (APX, BELPEX, EPEX SPOT, GME, Nord Pool, OMIE) that was initiated to establish intraday market coupling and was later extended with the relevant TSOs. The members of XBID established an Accession Stream working group to which every non-XBID member country could join in order to prepare for the implementation of the market coupling. HUPX has participated the establishment of a Local Implementation Project of XBID (LIP 15) in co-operation with the German, Austrian, Czech, Romanian, Slovenian, Polish, Bulgarian and Croatian parties aiming for introducing the intraday market coupling in the region and to join the currently operational XBID countries.