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 Jyrki Uusitalo

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 Jyrki Uusitalo

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 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 Jyrki Uusitalo

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