Volume-coupling between a power pool and a power exchange

Recent developments in European Union´s legal and regulatory frameworks are leading to the creation of the Internal Electricity Market, which will substitute the local spot electricity markets. In this direction, a volume-based market coupling approach between a Power Exchange (PX) and a power pool is implemented in this paper, in order to examine the feasibility of the aforementioned integration between markets with significant diversity in their design. The results of the volume-based approach are compared to those of a single market splitting approach, in terms of pricing, overall social welfare and computational time.