Price Coupling of Regions (PCR) is the project of European Power Exchanges to develop a single price coupling solution to calculate day-ahead electricity prices across Europe respecting the capacity of the relevant network elements on a day-ahead basis. PCR is open to other European power exchanges wishing to join.
This is envisaged to be a crucial element of the delivery of an EU target of a harmonized European electricity market. The integrated European electricity market, as set by CACM Regulation (Commission Regulation EU 2015/1222), is increasing liquidity, efficiency, and social welfare.
N-SIDE has a key role in this European project by developing one common algorithm. This algorithm called EUPHEMIA (acronym of Pan-European Hybrid Electricity Market Integration Algorithm) calculates day-ahead electricity prices across Europe and allocates cross border transmission capacity on a day-ahead basis.
EUPHEMIA is an efficient and versatile tool. It solves market coupling problems containing hundreds of thousands of orders and thousands of block and smart orders in less than ten minutes, in line with day-ahead operations timing. It implements several market designs and network models (ATC, flow-based). EUPHEMIA is to meet high-performance standards stipulated by all NEMOs, TSOs, and NRAs for Single Day Ahead Coupling
- High performance: achieved by leveraging N-SIDE’s extensive knowledge of the problem into powerful optimization techniques
- Non-discrimination: justified by the maximization of a widely-agreed criterion – social welfare
- Support of new requirements: successful integration of new products and constraints
- Robustness: enhanced by a dedicated hotline service
Nowadays, EUPHEMIA is used daily to compute in a coupled way day-ahead electricity prices for 26 European countries (Austria, Belgium, Czech Republic, Croatia, Denmark, Estonia, Finland, France, Germany, Hungary, Italy, Ireland, Latvia, Lithuania, Luxembourg, the Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Greece, and Bulgaria) with an average daily value of matched trades over EUR 200 million.
EUPHEMIA is owned by the corresponding Power Exchanges while supported and upgraded on a regular basis by N-SIDE. We provide maintenance and upgrade services, as well as a 365 days/year hotline support service to react immediately in any exceptional situation.