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Plans for future managing the congestion in CEE Region

Plans for future managing the congestion in CEE Region
In 2005 PSE S.A. has started its cooperation with Transmission System Operators representing CEE Region: ČEPS, a.s., Elektro-Slovenija, d.o.o., E.ON Netz GmbH (presently TenneT TSO GmbH), MAVIR Hungarian Transmission System Operator Company Ltd., Slovenská elektrizačná prenosová sústava, a.s., Vattenfall Europe Transmission GmbH (presently 50Hertz Transmission GmbH) and VERBUND-Austrian Power Grid AG with the aim to develop and introduce a consistent and effective transmission capacity allocation system in the CEE Region.

TSOs of the CEE Region are striving to develop and implement a sophisticated congestion management mechanism which aims at flow based capacity allocation in the CEE Region. The new model will enable market participants to reserve physical transmission rights necessary to execute cross-border transmission exchange contracts between individual areas in the Region. The new approach is based on coordinated calculation of the maximum available flow on critical line or transformer based on the common grid model and load flow forecasts.

Market participants taking part in the flow based allocation process place their bids for transmission rights enabling transmission of the electricity from one area of the Region to the each other for the time period for which the process is organized. The correlation between the power exchanges raised in the bids placed by participants and the caused flows is calculated in the Power Transfer Distribution Factors PTDFs matrix. In flow based capacity allocation approach transmission constraints are defined as limits for the real flows which would occur if the offer for transmission from one area of the Region to the other is accepted in the allocation process. Flow limits in this process are represented by the maximum flow level on critical part of the grid - line or transformer.

The allocation process is designed as optimization of the decision whether to accept a bid or to reject it, where the total value of accepted bids in the allocation process as objective function is being maximized assuming that limited transmission capacities are the constraints.

The flow based congestion management will be performed for group of control areas being a part of CEE Region. These are the areas under supervision of the following TSOs: PSEO, MAVIR, ELES and control areas constitute two market areas: first managed by TPS, 50HzT and APG  and second managed by CEPS, SEPS,. Flow based coordinated auctions will offer physical transmission rights necessary for execution of cross-border exchange between each pair areas of the Region. The total quantity of PTR’s depends on the structure and value of bids placed in the process and in fact they are determined within the allocation process.