Market Integration

Since 2006, TenneT has been working closely with other European TSOs and power exchanges on coupling the electricity markets in North West Europe. The ultimate aim is to establish a single market in which users of electricity are guaranteed a reliable electricity supply at a competitive price. The electricity markets will be coupled internationally. Traders at local energy exchanges will announce supply and demand levels based on the available (transmission) capacity in the participating countries. The market coupling system then determines the prices to be established in the energy trading zones and the electricity imports and exports between the countries participating in the market coupling system. Coupling these markets establishes a sound basis for further integration of the European electricity market. In this context, TenneT is also hard at work on other international projects such as NorNed, BritNed and COBRA, as well as upgrading the interconnections with Germany

The advantages offered by electricity market coupling include:

• harmonisation of electricity prices in the coupled region
  
  

• more efficient use of existing cross border electricity interconnections
  
  

• greater security of supply
  
  

• more cost effective electricity tariffs