Bidding Zone Review: Update regarding the ongoing process

The ongoing pan-European BZR has been delayed. However, Svenska kraftnät and the other Nordic TSOs are still aiming to deliver the results for the Nordics, including the recommendation for the Swedish bidding zones, already in February 2024.

The delay is not expected to have an impact on the previously communicated time plan for a possible implementation of new bidding zones in Sweden. According to the current time plan new bidding zones can be implemented at the earliest 2027.

The Swedish bidding zone review is performed as part of a common and coordinated pan-European bidding zone review. The modelling and evaluation is mainly performed at regional level (for Sweden this means the Nordics) while some aspects, e.g. the impact on market liquidity and transition costs, is evaluated within the pan-European study. The study as a whole, where bidding zone configurations for Sweden, Germany, Italy, Netherlands and France are being evaluated, has a new provisional target date Q3 2024. The study as a whole will result in a common report.

In addition, a pan-European consultation will be organized. The consultation will focus on the evaluation criteria on market liquidity and transaction costs as well as on transition costs. The consultation is planned for autumn 2023.

Svenska kraftnät, as well as the other European TSOs, are fully committed to deliver a bidding zone review with high quality. Large amount of resources are allocated for the study, which includes complex calculations and has required extensive development of our market models. As this is the first time the current methodology for evaluating the bidding zones is applied the complexity has further increased.