On 11 May 2021, the market coupling operations of the Bulgarian bidding zone in SDAC (Multi Regional Coupling) were successfully launched with the first delivery day of 12 May 2021. IBEX, the designated single nominated electricity market operator (NEMO) in Bulgaria is now included in the market coupling operational processes, along with ESO, the Bulgarian transmission system operator (TSO). The successful coupling is the result of the close collaboration between the Bulgarian parties with HEnEx, the designated Greek NEMO and ADMIE, the Greek TSO, together with the respective national regulatory authorities.
The Bulgarian-Greek market coupling project was launched as a part of the Italian Borders Working Table (IBWT) regional project with the official IBWT SC decision taken on the 1 March 2020. All the involved parties followed the mutually agreed planning and completed timely and successfully all necessary preparations and testing. On 11 May, for the first time, day-ahead cross-zonal capacity between Greece 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, maximizes social welfare to the benefit of all market participants.
The integration of the Bulgarian bidding zone into SDAC is a further step towards the achievement of the European target model, which is expected to be almost completed this year through the Bulgarian-Romanian market coupling project on the common border and as a previous step, the successful implementation of the Interim Coupling project, allowing the integration of the 4M MC with MRC through their common borders.
SDAC allocates scarce cross-border transmission capacity in the most efficient way by coupling wholesale electricity markets from different regions through a common algorithm, simultaneously taking into account cross-border transmission constraints, thereby maximizing social welfare.
The aim of SDAC is to create a single pan European cross zonal day-ahead electricity market. An integrated day-ahead market increases the overall efficiency of trading by promoting effective competition, increasing liquidity and enabling a more efficient utilization of generation resources across Europe.
