ACER has decided not to propose alternative electricity bidding zone configurations in the Baltic region

ACER has reached a decision that no alternative electricity bidding zone configurations need to be investigated in the Baltic region. The procedure to decide started on 26 September 2023.

What are the bidding zones?

A bidding zone is the largest geographical area within which market participants can exchange energy without allocating capacity. Currently, bidding zones in Europe are mostly defined by national borders. However, the existing European electricity target model requires defining bidding zones based on network congestions. Hence, the need for alternative bidding zone configurations has to be examined.

What are the Decision’s main highlights?

ACER’s Decision is based on the feedback received from stakeholders in 2021, as well as on the following information provided by Transmission System Operators (TSOs):

• the alternative configurations previously submitted to ACER; and
• the outcome of locational marginal pricing simulations (following the bidding zone review methodology approved in November 2020).

ACER concludes that the current bidding zone configuration in the Baltic region is adequate, and no alternatives should be sought with priority. Nonetheless, this conclusion does not preclude the possibility to investigate potential mergers of the Baltic bidding zones in future reviews.