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The current stage in the evolution of the European internal energy market forelectricity is defined by the transformation towards a renewable energy system.The Clean Energy Package aims to ensure that methods for capacity allocationand congestion management, that are at the center of the European internalmarket for electricity, align with this transformation.  Flow-based market coupling, the preferred method for capacity allocation, isfirst and foremost a formal process to allocate exchange capacities to themarkets. However, the process also allows for many considerations of theinvolved parties that impact the resulting capacities. As part of the ClearEnergy Package, the regulatory body enacted their ambition to increase exchangecapacities by enforcing transmission system operators to allocate a minimummargin of physical line capacity with the goal of providing a higher level ofcompetition and better integration of renewable energy sources. This studyinvestigates this and other policy relevant consideration of flow-based marketcoupling.  The model results quantify the trade-off between permissive capacityallocation and increased congestion management. For high shares of intermittentrenewable generation, less constrained exchange capacities are favorable,however also highlight the importance of the markets ability to integrate highshares of intermittent generation. apacities are favourable, however alsohighlight the importance of the markets ability to integrate high shares ofintermittent generation.

Evaluating Policy Implications on the Restrictiveness of Flow-based  Market Coupling with High Shares of Intermittent Generation: A Case Study for  Central Western Europe