Flow-based capacity calculation method used in electricity market coupling

Day-ahead electricity markets (DAMs) receive increasing attention in research, operation and among traders. Coupling these markets is the focus area of creating the European Internal Electricity Market (IEM). In the near future novel, so called flow-based transmission capacity allocation methods should be applied in this integrated market, as it is enforced by the IEM target model. Previously an NTC-based clearing algorithm has been realized and is under further development to provide a tool for modeling the effect of the planned couplings of the European DAMs. In this paper, we present the upgrading of the market clearing tool by implementing flow-based capacity constraints. Formulation of the market coupling problem and the optimization algorithm are detailed. The clearing simulation tool has been applied for assessing the future flow-based coupling of the Czech, the Slovak and the Hungarian power exchanges, using the novel capacity figures calculated from a load flow model.