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.