In order to benefit the markets from increase in utilisation of the available infrastructure of SwePol Link (HVDC link between Poland and Swedish SE4 bidding area) and LitPol Link (HVDC link between Poland and Lithuanian bidding area) Polish, Swedish and Lithuanian TSOs in coordination with respective power exchanges plan to implement Polish, Swedish and Lithuanian market coupling arrangements update by activation of Polish optimization area (PLA) between Poland and both SE4 and LT bidding areas. The PL-PLA (capacities between Polish power system and Polish optimisation area) will represent “Capacity Allocation Constraints” as a result of Polish power system constraints, while capacities between PLA-SE4 and PLA-LT will represent available cross-border capacities.
Regulation 1222/2015 establishing guidelines on Capacity Allocation and Congestion Management defines “Capacity Allocation Constraints” as constraints to be respected during capacity allocation to maintain the transmission system within operational security limits and have not been translated into cross-zonal capacity or that are needed to increase the efficiency of capacity allocation.
“Capacity Allocation Constraints” and PLA optimization area were implemented together with market coupling process on LitPol link, and are currently visible on TGE and NordPool systems, however they have not been actively used so far. Currently, in order to satisfy security requirements related to availability of sufficient generation and generation reserves in Poland, Polish TSO needs to incorporate the “Capacity Allocation Constraints” into the available transfer capacities, thereby limiting the total flow on connections between Poland - Swedish SE4 bidding area (PL-SE4) and Poland – Lithuanian bidding area (PL–LT). However, given the fact that the currently applied approach did not allow for efficient use of available resources, the concerned TSOs decided to activate the possibility to use “Capacity Allocation Constraints” via PLA optimization area. “Capacity Allocation Constraints” are bidirectional, with independent values for directions into Poland and from Poland.
Bidding zones structure and market coupling update
Biding Zones configuration, taking into account-foreseen market coupling arrangements update, is depicted on the Figure 1.
The following bidding areas configuration are planned to be used:
PLA – Polish optimization area used to implement allocation constraints for PL
PL – Polish bidding area, to which Polish power exchange TGE is connected
SE4 – Swedish bidding area 4, to which Swedish power exchange NordPool is connected
LT – Lithuanian bidding area, to which Lithuanian power exchange NordPool is connected
Timeline for SE4-PL-LT market coupling arrangements update
Polish, Swedish and Lithuanian TSOs foresee the following timeline for SE4-PL-LT market coupling arrangements update:
Markets participants are welcome to provide feedback on planned SE4-PL-LT market coupling arrangements update to the corresponding TSOs by May 1st, 2017. In case no significant objections are raised by market participants, preventing from implementing planned SE4-PL-LT market coupling arrangements update, TSOs shall continue with planned implementations and would launch SE4-PL-LT market coupling arrangements update (activation of Polish optimization area PLA) starting July 1st, 2017.
The contact persons of respective TSOs:
Polish TSO contact: Kamil Smolira, e-mail: email@example.com; tel +48 22 242 23 07
Swedish TSO contact: Rebecca Nilsson, e-mail: firstname.lastname@example.org ; tel +4610 475 81 88
Lithuanian TSO contact: Paulius Butkus, e-mail: email@example.com; tel.: +370 5 278 2735