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ENTSO-E's Bidding Zone Technical Report gives new transparency on grid constraints

17 October 2018, 16:02

ENTSO-E's Bidding Zone Technical Report gives new transparency on grid constraints
The Technical Report covers the years 2015 to 2017 and provides transparent and factual information for the whole EU on congestions, flows scheduled outside the market and costs of these congestions. This new Technical Report is the first report delivered under CACM Regulation. It is an important input to a periodical assessment of the efficiency of the current bidding zone configuration performed by ACER every three years. An adequate bidding zone configuration is an important factor for efficient congestion management and well-functioning market.

The report also identifies geographical locations of congestions and their frequency for three different timeframes, as well as TSO expert assessment and explanations of local grid constraints. The report also provides indications on the likely evolution of congestion over next ten years. The Technical Report also provides in-depth information on costs of remedial actions taken by the TSOs to eliminate congestion and ensure secure system operation, as well as indications of power flows” scheduled outside market processes.

ENTSO-E’s Bidding Zone Technical Report serves as facts collection and does not provide recommendation on future bidding zone configuration change; however, the new bidding zone review might be triggered by ACER or other parties, involving relevant TSOs and covering selected grid areas.

Commenting the release of the report, Laurent Schmitt, ENTSO-E Secretary General declared: “ENTSO-E and its members are demonstrating full transparency through these processes. While the preparation of this first report has shown the complexity of collecting necessary information, TSOs and ENTSO-E have constructively collaborated through that exercise to produce facts and figures on the current grid situation. We are fully committed to increase transparency on grid constraints. The report demonstrates that the European system has physical limitations in some areas and cannot be considered as a simple copper plate. We are aware that markets and physics need to better align in the future and our community is fully committed towards implementation of all Network Codes to bring further alignment”.