S.2.2. The Internal Energy Market

D.2.2. The Internal Energy Market

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ENTSO-E publishes first edition of bidding zone review

Thursday, April 5, 2018

The public consultation on ENTSO-E’s First Edition of the Bidding Zone Review was open until 09 March 2018. Since then, the stakeholders’ feedback was assessed and ENTSO-E published the final Review.

The Review says of bidding zones that they are an essential element of the present European market design and as such, that “the definition of bidding zone boundaries is, therefore, a question of major relevance for the market and requires profound analysis”.

On 21 December 2016, ACER tasked the respective TSOs with: (i) specifying the configurations subject to the review; (ii) consulting with the national regulatory authorities (NRAs) regarding the assessment methodology, assumptions and configurations, and with stakeholders regarding the alternative configuration proposals; and (iii) drawing a final conclusion on whether to maintain or amend the bidding zone configuration for submission to the Member States. This process lasted 15 months, ending on 21 March 2018.

Given the various considerations and limitations outlined by the Review, “the evaluation presented in th[e] First Edition of the Bidding Zone Review does not provide sufficient evidence for a modification of or for maintaining of the current bidding zone configuration. Hence, the participating TSOs recommend that, given the lack of clear evidence, the current bidding zone delimitation be maintained”.

The Bidding Zone Review was done in accordance with EU Regulation 2015/1222 on establishing a Guideline on Capacity Allocation and Congestion Management (CACM), which stipulates that assessment of the bidding zone configuration needs to be carried out regularly.

According to the CACM, the EU Member States, or where required the National Regulatory Authorities, have a period of six months (i.e., until 30 September 2018) to reach an agreement on maintaining or amending the bidding zones’ configuration.