A multilateral market coupling procedure for the internal electricity market simulation

Afterwards the energy market liberalization in European countries, the issue of optimal allocation of cross border interchanges has gained a notable importance. The most widely accepted method for the congestion management among several interconnected countries is the ldquodecentralized market couplingrdquo (DCM), which was successfully implemented by the power exchangers of France, Belgium and the Netherlands. In this paper an iterative procedure that applies the DMC method to a large interconnected network is presented and the solution is compared with that achieved by a single pool simulated by means of a market splitting method.