With the inclusion of the Bulgarian-Romanian border, a geographical loop has been closed and the Southeast Europe (SEE) region is now fully integrated into the Single Day-Ahead Coupling (SDAC). This marks yet another major milestone in the process of integrating the European day-ahead power markets.
Market coupling operations for the Bulgarian-Romanian border in SDAC were successfully launched at the end of October and, for the first time, day-ahead cross-zonal capacity between Romania and Bulgaria has been implicitly allocated via the Euphemia algorithm.
The implemented price coupling allows for the simultaneous calculation of electricity prices and cross-border flows across the region. The efficient use of the power system and cross-border infrastructures, brought about by stronger coordination between energy markets, aims to maximise social welfare to the benefit of all market participants.
Integration of the Bulgarian-Romanian bidding zone border into SDAC marks yet another major achievement in the completion of the European target model. In addition to the HVDC interconnection between Greece and Italy, the Greek and Bulgarian day-ahead markets are now also connected northbound via the Bulgarian-Romanian border with SDAC.
This successful coupling is the result of close collaboration between the Bulgarian and Romanian Nominated Electricity Market Operators (NEMOs) and Transmission System Operators (TSOs), namely IBEX, OPCOM, ESO and Transelectrica, together with the respective National Regulator Authorities (NRAs).