Flow-Based Market Coupling (FB MC) is a crucial concept in understanding how European electricity markets operate, influencing the formation of cross-border flows among numerous European countries. This master’s thesis outlines the fundamental ideas behind market coupling and provides a more detailed examination of flowbased market coupling. A particular focus in the master’s thesis is devoted to the treatment of long-term allocations of cross-border transmission capacities (LTA) in
the context of flow-based market coupling. The impact of long-term allocations on market outcomes is assessed in the master’s thesis through simulations of market processes. An analysis of the simulation results reveals that long-term allocations have noticeable effects on market prices, cross-border flows, and price differences among various European markets.
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