Electricity market

Market coupling

Market coupling refers to the endeavour to create an integrated, harmonised European electricity market by connecting electricity markets in different local or national areas. The coupling of markets enables uniform rules to be established for trading electricity between local or national bidding zones. The electricity exchanges ensure that all local supply and demand is available to all market participants at the same time with the objective of minimising price differences between regions. Another objective is to bring the electricity market into line with the physical reality of electricity flows, since neighbouring networks are already physically connected to each other. As we know, electricity always takes the shortest route from the producer to the consumer – across all market boundaries. Transmission system operators must therefore make their technically available capacity available for exchange. Austria is currently integrated into the European market coupling system via its borders with Italy, Slovenia and Germany.