Capacity allocation and congestion management

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​​The CACM Regulation

​​​​​​​​​​​​​​​​​​​​The CACM Regul​ation provides binding rules for the implementation and operation of EU-wide single market coupling in the day-ahead and intraday timeframes. These rules apply to the transmission system operators (TSOs), Nominated Electricity Market Operator (NEMOs), regulatory authorities and ACER. ​

The core elements

​The core elements of CACM Regulation are:

  • Opt​imal definition of b​idding zones​. Bidding zones are geographic areas within which electricity exchanges are unrestricted, whereas exchanges between bidding zones require cross-zonal capacity - which is limited. Bidding zones should be defined to prevent structural congestions within a bidding zone. In case the existing bidding zone configuration is not efficient, TSOs need to review the structure and propose a more efficient one.

  • Calculat​ion of capacities between bidding zones​. Capacity calculation should be coordinated among TSOs to become as efficient as possible and transparent for market participants. As a result, TSOs can provide an optimal amount of cross-zonal capacity for allocation in the market.

  • Allocation of cross-zonal capacities​ with market coupling​. The most efficient way to allocate cross-zonal capacity is the use of the Union-wide market coupling, which collects all bids and offers from the bidding zones within the European Union and maximises the economic surplus. For this purpose, NEMOs organize the day-ahead coupling as an implicit auction and the intraday coupling as continuous trading supplemented by numerous implicit auctions. The CACM Regulation also addresses the related post-coupling pr​ocesses​.

  • Management of re​sidual con​gestions​. Physical congestions, which were not prevented by capacity calculation and allocation, need to be managed by coordinated TSOs' actions -i.e. by using countertrading or re-dispatching.