What is Electricity Market Coupling

Day ahead electricity price forecasting is an extensively studied problem, and several statistical, intelligence-based, and other techniques have been proposed in literature to address it. However, the liberalization of the electricity market taking place during the last decades and the market coupling pursued within the European Union reshape the problem and create the need to confirm the effectiveness and/or revise existing methods and solution techniques, and/or invent new approaches. Given that complete integration has not achieved yet, both relevant data and studies of forecasting considering integration are still rather sparse. It has thus been the aim of this chapter to contribute to filling this gap by focusing on and studying the market integration effects in day ahead electricity price forecasting. To this end, an artificial neural network has been developed and used under several, with respect to inputs, forecasting scenarios considering the Italian electricity market.