The Single Day-ahead Coupling (SDAC) enables electricity trading across European borders through implicit capacity allocations. It aims to establish a unified pan-European cross-zonal day-ahead power market, improve market efficiency, promote competition, and integrate renewable energy sources. This mechanism plays a crucial role in optimizing cross-border electricity flows for a more resilient and interconnected European energy market.

Transmission System Operators (TSO) are responsible for analyzing and determining the network's capabilities and restrictions to ensure the reliable transmission of electricity. Market participants can access published capacities that enable them to make informed decisions and plan their energy transactions effectively.

Market participants submit their orders to their power exchanges.

At 12:00, the gate closure time marks the deadline for market participants to submit their offers to their power exchanges. The regulatory-approved algorithm EUPHEMIA* determines market prices based on the submitted orders and available cross-zonal capacities, maximizing economic surplus and ensuring power flows stay within network capacity.

[*Pan-European Hybrid Electricity Market Integration Algorithm - EUPHEMIA algorithm]

At 12:45, market participants gain access to the preliminary results, providing them with an initial overview. Finally, at 12:57, the final results are confirmed, concluding the pricing process.

SDAC allocates limited cross-border zonal capacities as efficiently as possible: wholesale electricity markets from different regions are coupled by a common algorithm (PCR EUPHEMIA) that continuously takes into account cross-border transmission zonal capacities and maximizes social welfare. The purpose of Price Coupling of Regions (PCR) is to calculate electricity prices across Europe using a single, common tool to implicitly allocate cross-border capacity on auctions.

For more information visit Nemo Committee website and in Euphemia Public description.