The Euphemia Lab, providing cutting edge R&D services to bring PCR EUPHEMIA to the next level for the Single Day-ahead Coupling (SDAC) of European electricity markets, has delivered the past months, its first important successes.
The target European electricity market model and provisions of the European regulations seek to implement a Single Day-ahead Coupling (SDAC) of day-ahead electricity markets across Europe. PCR EUPHEMIA (acronym of Pan-European Hybrid Electricity Market Integration Algorithm), developed at N-SIDE for the Price Coupling of Regions (PCR) project, is the selected common algorithm for the SDAC. It calculates day-ahead electricity prices across Europe, matches electricity demand and supply, and allocates scarce cross–border transmission capacity in the most economically efficient way on a day-ahead basis. As an existing solution, PCR EUPHEMIA has also been proposed for the execution of intraday auctions of the future Single Intraday Coupling (SIDC). Figure 1: Geographical Scope of SDAC MSD
Increased market product usage, geographic and network scope extensions as well as a transition to more granular market time units, both for submitted orders and network constraints, are all new and complex challenges planned for SDAC in the next years, calling for a dedicated algorithm R&D program provided by N-SIDE.
An innovatory algorithm consistently improved
Over the years, N-SIDE has continuously improved PCR EUPHEMIA beyond its initial go-live in 2014, ensuring excellent performances throughout the various scope extensions and evolutions (see figure 2). This state-of-the-art algorithm relies on advanced optimization techniques, combined with a deep mastery of the underlying business needs.
Figure 2: Past Evolutions of Euphemia 
With the Euphemia Lab, N-SIDE is partnering with European Nominated Electricity Market Operators (NEMOs) and Transmission System Operators (TSOs) to provide a dedicated R&D program aligning PCR EUPHEMIA with upcoming SDAC needs and requirements, keeping its role of lead innovator in the European electricity market landscape. Main objectives are to fully meet the long-term scalability requirements and maintain the high quality of the solutions in terms of optimality of social welfare .
Proven-track record of success
The Euphemia Lab started in 2019 and already provided highly promising outcomes and prototypes which will be implemented in the next Euphemia release, Euphemia 10.5 . For example, a new product (the so called “Scalable Complex Order”) and a revision of the LTA inclusion process in Flow-based models have been introduced. Both improved the scalability of the algorithm and respectively decreased the time to find a solution by 34% and 56% . A more detailed account of the R&D program and its successes can be found in the SDAC R&D Section of the CACM Annual Report 2019 published by the All NEMO Committee in coordination with ENTSO-E, the European Network of Transmission System Operators for Electricity.
 CACM Annual Report 2019, All NEMO Committee in coordination with ENTSO-E.