A new method of calculating power transmission capacities for the day-ahead power market in the Nordic countries was introduced at the beginning of November 2024. This new method, called Flow-Based Market Coupling (FBMC), represents a significant change in power market operations.
Our customer required assistance in developing a short-term power price forecasting model to meet the November deadline. The model needed to comprehensively describe production and consumption across all Nordic price areas, including capacities of international interconnector cables. A key requirement was the model’s ability to integrate daily published power line transmission capacities.
Solution: our approach
Our consultant joined the client’s internal team to:
- Establish a comprehensive domain model to organize input data
- Set up the optimization problem
- Develop analytical tools for forecasting
- Document the mathematical foundations for internal reference.
Our consultant’s background in the renewable power sector and experience from the colleagues at XAL provided important domain expertise.
Results
The model was completed before the November deadline and successfully deployed on the first day of Flow-Based Market Coupling.