Flow-Based (FB) Market Coupling allocates capacity by optimizing the global market of the different coupled spot markets’ order books while granting that the physical limits of the grid are respected.

The Flow Based method enables grid specificities to be better considered and transmission capacity to be allocated to the market by electrical branch rather than by border, as is the case with ATC-based method. The FB method enables more exchanges between market areas, which enhances the average day-ahead market welfare and price convergence in the CWE region.

The CWE FB capacity calculation method was launched in operation on 22/05/2015.

After go-live, an improvement process of the FB method has been started regarding the qualification of the Flow Based domain:

  • A better management of curative remedial actions
  • A better coordination of remedial actions using one new common tool
  • A better forecast of the likely market directions