CM Guidelines, Implicit Auction as a Congestion Management Method

Baltic Electricity Market Mini-Forum 24 April 2009

Jyrki Uusitalo, Fingrid Oyj

Congestion management methods

CM guidelines, annex to Regulation (EC) 1228/2003, a legal framework for congestion management • No congestion – no restriction of access, CM methods shall be market based• Capacity shall be allocated only by using explicit or implicit auction• CM mechanism may need both long- and short-term allocation, in regions where forward financial market are well developed all capacity may be allocated through implicit auction day-ahead • For intra-day trade continuous trading may be used

24 April 2009

2

Jyrki Uusitalo

DEDE

RoI

RoI

UKUK

FRFR

ESESPTPTITIT

AUAUSISI

GR

GR

RO

RO

CZCZ SKSK

NLNL

DKDK

NO

NO SESE

FIFI

EST

ESTLVLVLTLT

BG

BG

Cro

Cro

ME

BABA

LULU

II

RSRS

CYCY

PLPLBEBE

FYROM

FYROM

HUHU

NINI

CHCH

Transmission capacity

Maximum capacity complying with secure network operation rules has to be made available for the market participants

Coordination between neighbouring TSOs is essential• Transmission model, capacity calculation, information exchange, real-time operation• Clear assignments of responsibility, identical timeframes and gate closures• Transmission outage planning and timing

24 April 2009

3

Jyrki Uusitalo

550

1000700

1750

600

16001200

1100

1500

1400

120

1400

2200

600

50

100

60

950

350800

700

600

1350

100

300

600

Transparency

TSO shall publish:• Data related to network availability, access and use, methods applied for congestion management• Scheme for the calculation of capacity for different timeframes, operational security standards• Data concerning cross-border trade, available and nominated capacity, physical flows

Transparency ensures credibility for TSO activities and electricity market

24 April 2009

4

Jyrki Uusitalo

TSO Experiences

Implicit auction is an efficient tool for TSO to handle congestions• Secure flow in congested cross-section combined with effective market solution• Capacity allocated with one auction by PX • Smooth coupling of different regions

Challenge to define appropriate network areas when developing market is using network more in it's capacity limits

Congestion management has a significant role when TSO promotes development of effective electricity market

24 April 2009

5

Jyrki Uusitalo

Keeping the lights on in Finland