Market Coupling
Market coupling can increase arbitrage. (a) Before market coupling, EU cross-border trade was mainly short-term arbitrage. 4 (b) After market coupling, arbitrage is not limited to the day-ahead or intraday market. This is because access rights for long- and medium-term capacity allocations must be firm transmission capacity rights subject to the use-it-or-lose-it (UIOLI) principle or the use ...
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