More trading capacity available in intraday markets when virtual electricity area is introduced
Svenska kraftnät has applied for what is called a virtual electricity area between SE3, DK1 and NO1 in the intraday market. The purpose is to optimize trading capacity in the intraday market between the areas. The proposal is one of several measures Svenska kraftnät is working on, in order to increase the available capacity to the market in the short term, until the Nordic region introduces a flow-based method for capacity calculation and capacity allocation.
The introduction of a virtual electricity area presupposes consensus
The proposal for a new virtual electricity area needs to be approved and prioritized by the system operators and the power exchanges that are part of the common European market. Svenska kraftnät has made a request for a so-called “virtual bidding zone” (the name for the optimization in the European market connection algorithm XBID), which is now being processed by SIDC, the collaborative forum for the European market connection.
Together with capacity allocation on the day-ahead market, which was introduced in March this year and which took effect on the first trading day (trading opportunities between DK1 and NO1 increased significantly while maintaining operational reliability), the proposal will lead to increased trading capacity, higher transfer volumes and reduced price differences between electricity areas in the Nordic region. Implementation of the proposal requires joint prioritization among TSOs and power exchanges.
Actively working to increase available trading capacity
The new flow situation with East-West flows in 2021 has led to a large reduction in the trading capacities made available in a reliable manner for trade between SE3 and surrounding electricity areas. Svenska kraftnät is working on a number of measures that will be able to increase the capacity made available to the market for both short and long term.
More information about the implementation and a detailed schedule will be available after the summer of 2022.
More information and contact
If you have any questions, please contact us via kapacitetshantering@svk.se
Read more about capacity calculation and capacity allocation as well as East-West flows:
More trade capacity available on the day-ahead market when new sum allocation is introduced 29th March | Svenska kraftnät
Svenska kraftnät proposes a new measure to increase available trading capacities | Svenska kraftnät