In the late nineties, a gradual process of privatisation and deregulation led to the establishment of national wholesale electricity markets throughout Europe. Several marketplaces, commonly referred to as power exchanges, were founded. The wholesale markets facilitate trading between generators, energy-intensive industries, retailers, and financial intermediaries both for short-term delivery of electricity (spot markets) and for longer-term delivery periods (futures markets). 

Half a decade later, the spot markets embarked on a process of market coupling across national borders. The European Commission was, and still is, the driving force behind this movement, as market coupling is considered to enhance security of supply and result in better consumer prices.