Nordic study on bidding zone configuration
Fingrid and the other Nordic Transmission System Operators are jointly reviewing bidding zone configuration. After the alternatives have been evaluated and approved by regulatory agencies, TSOs will conduct a more detailed analysis of the alternatives and hold public hearings in the countries concerned.
– It is advantageous to review the bidding zone configuration for the Nordic region on the same principles and on a continuous basis, says Asta Sihvonen-Punkka, Fingrid's Executive Vice President. The power systems of the Nordic countries are closely interconnected, and a harmonised and well-functioning power market makes it possible to meet the need for secure power supply as well as conversion to a more climate friendly production and consumption of energy in an effective way.
The Nordic study conforms to new European regulation, requiring all TSOs to propose methodology, assumptions and possible alternative configurations of bidding zones that are to be analysed in a regional bidding zone review using a common methodology. In the future, bidding zone configuration reviews need to be conducted regularly.
Development of a common methodology for bidding zone configuration assessment within Europe is ongoing and TSOs are to report proposals for alternative configurations for further analysis. For Finland, no alternative configurations are proposed and Finland will be included in the analysis as one bidding zone like today.
A proposal for method and which alternatives are to be evaluated will be submitted for regulatory approval in October. If approved, the TSOs will proceed with a detailed study for their respective bidding zone review region, to be completed within a year. Any changes of the bidding zone configurations will be subject to consultation and public hearing before the proposals are submitted to the national regulatory agency.
– We hope that the market stakeholders will use this opportunity to present their input on possible bidding zone reconfiguration. More information regarding the consultation process will be presented after the authorities have considered the proposed alternatives, says Asta Sihvonen-Punkka.
According to plan, decisions regarding any changes of country bidding zones will be made by the end of 2020.
More information:
Finland's biding zone: Expert Risto Kuusi, Fingrid, tel. +358 303 954 122