'Market Coupling Operator (MCO) function' is the task of matching orders from:

 

- the day-ahead markets, and

 

- the intraday markets;

 

for different bidding zones and simultaneously allocating cross-zonal capacities (Article 2(30) of the Commission Regulation (EU) 2015/1222 of 24 July 2015 establishing a Guideline on Capacity Allocation and Congestion Management - CACM (Regulation on market coupling).

 

According to the ACER Monitoring report of 30 January 2019 on the implementation of the CACM Regulation and the FCA Regulation (p. 5) “[t]he legal framework for the development, operation, governance and financing of the MCO Function for the single day-ahead and intraday coupling is complex and suboptimal. The main problem is that the responsibility for the development and operation is given to NEMOs, which may not have sufficient incentives to deliver an optimal setup of the algorithms and associated products, because (i) they compete with each other, while at the same time they need to cooperate and make decisions in the wider European interest to ensure a robust and reliable development and operation of the single coupling and (ii) they rely largely on TSOs to recover their costs, whereas TSOs are reluctant to cover those costs without being involved in the development and operation of those algorithms and products. Therefore, the Agency recommends a revision of the governance of the algorithms and of the associated cost recovery.”

 

 

 

 

IMG 0744

    Documentation    

 

 

 

Commission Regulation (EU) 2015/1222 of 24 July 2015 establishing a Guideline on Capacity Allocation and Congestion Management - CACM (Regulation on market coupling)Article 2(30)

 

ACER Monitoring report of 30 January 2019 on the implementation of the CACM Regulation and the FCA Regulation, p. 5

 

 

 

 

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    Links    

 

 

 

 

Nominated Electricity Market Operator (NEMO)  

 

market coupling

 

Electricity market operator 

 

Market Operator (REMIT)

 

Market Operator (MiFID)