The power exchange is an automated trading platform, where the market participants are able to trade certain products at a certain time through day-ahead auctions.
Market coupling by exchanges is a next step to the liberalization of electric energy markets, based on the increasing profits of the market participants and efficient exploitation of crossborder capacity.
In our country the theme gets a lot of attention, because Hungary joined the countries with power exchanges in the summer of 2010, establishing HUPX.
By the novelty of topic, there is only a few hungarian literature that helps research. My thesis aims at filling this missing gap, based on most relevant foreign resources.
In the first part of my thesis I inrtoduce the power exchange. Than I talk about the basic definitions of the market coupling. I illustrate the mechanism with a three participant coupling. I show COSMOS algorithm, that assigns the winning offers. In the last section I discuss the european power exchanges, and their expected near future.