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Europe: Alstom technology enabling a single European electricity market

Alstom has delivered its e-terramarket calculation software to The Central Western European (CWE) Flow Based Market Coupling project.

This project supports the vision for a single European electricity market model by maximising the use of electricity available between participating Transmission Service Operators (TSOs)[1] across borders.

Market coupling is a system used to connect different markets in any given region, reducing price differentials whilst making full use of the available transfer capacity of electricity between countries. The Flow Based model takes into account all the relevant physical constraints of the transmission grid and the impacts of cross-border electricity exchanges. This is done to optimise the market flows, matching supply and demand to offer more capacity as well as keeping energy prices competitive.

Alstom’s e-terramarket solution implements this new Flow Based method, ensuring optimal use of available capacity and reduction of transmission congestion, resulting in more freedom and transparency for network operators. This method estimates a saving of up to €100M per year.

This delivery success reinforces the value of Alstom’s robust, accurate and very fast power flow calculation software. Alstom’s proven strong expertise in network analytics and optimisation techniques, as well as its experience with ENTSO-E standards compliance, has helped establish the company physical-financial market solution leadership in Europe and around the world”, said Karim El Naggar, Vice President Alstom Grid’s Network Management Solutions.

The Flow Based Market Coupling project improves cross border trading of electricity between member countries[2] of the CWE region. This project begins by connecting the northwest European region to neighbouring markets, eventually to be rolled out all over Europe. Entities now have the option to buy capacity from other countries when there is demand and if the price is right.


[1]Participating Transmission System Operators include: Amprion GmbH, Creos Luxembourg SlAl, Elia System Operator SA, EnBW Transnet BV, RTE, TenneT TSO B.V.

[2]Member countries include Belgium, France, Germany, Luxembourg and The Netherlands


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