Flow Based Allocation of transmission capacity has been advocated as the target model for grids like the Central Western European (CWE) grid which paves the way towards the completion of the European Internal Energy Market. Combining Market Coupling Model with Flow Based Systems helps to maximize the value of the total economic surplus in the coupled spot markets’ while not risking the secure operation of the connected grid. Since 2015 Flow Based Market Coupling (FBMC) replaces the dominating Available Transfer Capacity (ATC) approach for cross-border day-ahead trades in the Central Western European region. FBMC bases on mapping load flows within the network along actual physical principles.
In the effectiveness of these FBMC systems linearized parameters like them Generation Shift Keys play a significant role. In this paper I try to lead the reader into the topic step by step and I am investigating the impact of the calculation strategy of these parameters on the social welfare wich shows the economic efficiency of the system.