European power: Market coupling initiatives spread

In this introduction to Energy Risk’s series on European power markets, Rachel Morison and Katie Holliday look at cross-border integration in Europe, with a focus on the latest market coupling initiatives, asking what’s needed to extend the initiative across Europe

The European Commission’s third energy package, adopted in April last year, aimed towards ensuring a truly competitive energy market within the EU. One of the main focuses of the legislation is on cross-border trading and integration of electricity between EU member states through a market-coupling mechanism.

Market coupling integrates electricity markets in different countries while retaining the local arrangements as far as possible. The aim is to improve market efficiency and create price

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