In 2020 RSE have been involved by ARERA (the Italian Regulation Authority for Energy, Networks and Environment) in a new activity focused on assessing the compliance of Euphemia, the European clearing algorithm for the coupling of the national day-ahead electricity markets.

ACER (the Agency for the Cooperation of Energy Regulators), in collaboration with the NRAs (National Regulation Authorities), developed a methodology document outlining specific criteria for market clearing algorithm compliance. As part of this oversight, RSE was enlisted to assist in the evaluation.

This first part of the activity involved defining methods to assess the conformity of market clearing algorithms with the requirements outlined by ACER. Subsequently, within the Three-year Realization Plan 2022-2024, RSE reprised this work, with the aim of testing these requirements. To do so, PCR, the consortium of Nominated Energy Market Operators (NEMOs) owning Euphemia, made available the Simulation Facility, a web-based application embedding the Euphemia algorithm which enables simulations based on Single Day Ahead Coupling (SDAC) data.

The first part of this activity, which is reported in this deliverable, aimed to understand the testability of each requirement on the Simulation Facility, explore relationships between different requirements and inputs.

In order to be able to properly set up the testcases to be run on the Simulation Facility, a thorough and continuous cooperation with ACER and some of the European NRAs has been brought on, also involving Transmission System Operators and NEMOs, when needed, to obtain specific data or to overcome the challenges in the input definition for the Simulation Facility.

The activity will continue next year by running the defined testcases.