CWE marketcoupling

CWE market coupling (CWE MC) is the project in which various TSOs and power exchanges are working to couple the Belgian, German, French and Dutch electricity markets. The end result is to harmonise prices and create a lower average price across this region.

In June 2007, a Memorandum of Understanding (MoU) was signed in Luxembourg by governments, electricity market regulators, power exchanges, grid operators and collaborative organisations for the energy market parties of Belgium, France, Germany, Luxembourg and the Netherlands. The MoU marked the beginning of the coupling process. The market coupling in the CWE region means that price coupling is being implemented with regard to the spot markets in the region. The market coupling in the CWE-region ensures that available cross-border capacity can be utilised more efficiently. The CWE MC project will start as a market coupling based on coordinated, fixed transmission capacity. This step is necessary if an implicit allocation of capacity on the basis of power flows (‘flow-based’) is to be achieved.

The project counts three power exchanges (the British/Dutch APX-ENDEX, the Belgian Belpex, and the German/French EPEX Spot) and seven grid operators (Amprion, Creos, Elia, EnBW TNG, RTE, TenneT, and transpower) among its participants.