Baltic Cable strengthens TSO cooperation by becoming a full member of SDAC

Today, Baltic Cable has become a full participating member of the Single Day-Ahead Coupling (SDAC) cooperation, joining 31 other Transmission System Operators (TSOs) and 17 National Electricity Market Operators (NEMOs). Baltic Cable’s capacity has been already allocated using implicit processes since 2010, becoming a full member allows Baltic Cable to participate in the further development of the project. 

SDAC creates a single pan-European cross-zonal day-ahead electricity market. The integrated nature of this day-ahead market increases the efficiency of electricity trading by increasing liquidity and allowing supply and demand to be matched through the use of the Euphemia algorithm. Baltic Cable’s capacity is allocated by the algorithm, which determines the most optimal cross-border flow that will benefit Europe as a whole by increasing its socio-economic welfare. 

Baltic Cable is not new to implicit market coupling, and today’s milestone does not change how its capacity is made available to the market. Baltic Cable’s 600MW of capacity between the bidding zones of Sweden 4 (SE4) and Germany/Luxembourg (DE/LU) has been allocated using implicit processes since 2010 (through SDAC and prior TSO-NEMO cooperation arrangements).  

Since its certification as a TSO in 2019, Baltic Cable has been working hard to integrate into the various cooperation arrangements which are well established in Europe, and participating in the SDAC project in our role as a TSO is the latest milestone in that process. This allows Baltic Cable to contribute to the further development and optimisation of the single day-ahead coupling.