One of the key elements of the PCR project is the development of a single price coupling algorithm, called EUPHEMIA (acronym of Pan-European Hybrid Electricity Market Integration Algorithm). It is used to calculate energy allocation, net positions and electricity prices across Europe, maximising the overall welfare and increasing transparency of price computation and power flows resulting in net positions. Both MRC and 4M MC use PCR EUPHEMIA and it will also be the IT asset for the execution of market coupling following the merge of the two abovementioned projects. Details of the algorithm are given in the following documents:

Euphemia Public Presentation.pdf

Input data to PCR EUPHEMIA are network capacities and constraints provided by TSOs and bids and offers provided by NEMOs.

PCR EUPHEMIA matches energy demand and supply for 24 hours simultaneously. The algorithm runs a combinatorial optimization process based on:

• modelling of the matching problem
• implementation of dedicated branch-and-bound strategies and
• utilization of a standard optimization solver.

The code of the algorithm uses Javascript and is interfaced with the matching system via an Oracle database.

This process maximises social welfare - consumer surplus, supplier surplus and congestion rent - and also takes into account price limits of orders and network constraints. The algorithm is designed to factor in a large variety of orders and network features as well as local market rules. Output data are clearing prices, matched trades, scheduled exchanges and the net position of bidding areas.

Since its launch, PCR EUPHEMIA has been continuously developed. The most recent major development has been the integration of multi-NEMO requirements. More information can be found in the attached report published before the implementation of the 10.3 version of the algorithm:

EUPHEMIA 10.3 Release Note.pdf

Valid till 14/05/2019: EUPHEMIA Public Description.pdf 

Valid from 14/05/2019 to 12/10/2020: EUPHEMIA Public Description 

Valid from 12/10/2020  EUPHEMIA Public Description