Cross-Border Zonal Capacities

ELES contributes to the development and formation of a single European market through its cooperation with the European Network of Transmission System Operators (ENTSO-E) and international projects.

ELES allocates Cross-Zonal Transmission Capacities (CZC) at explicit and implicit auctions and on the principle of the continuous allocation. Yearly auctions take place annually, monthly are carried out once a month. Daily Auctions and Intraday allocation takes place every day of the week. The allocation is carried out in accordance with the applicable rules of allocation.

Border	Auction type	Auction operator
SI-AT	Explicit coordinated: annual, monthly Market Coupling – implicit: daily Market Coupling - implicit: intraday auctions Continuous Allocation:implicit intraday allocation	JAO SDAC SIDC/IDA SIDC
SI-IT	Explicit coordinated: yearly, monthly Market Coupling – implicit: daily Market Coupling - implicit: intraday auctions Continuous Allocation-implicit intraday allocation	JAO SDAC SIDC/IDA SIDC
SI-HR	Explicit coordinated: annual, monthly Market Coupling – implicit: daily Market Coupling - implicit: intraday auctions Continuois Allocation:implicit and explicit intraday allocation	JAO SDAC SIDC/IDA SIDC
SI-HU	Explicit coordinated: annual, monthly Market Coupling – implicit: daily Market Coupling - implicit: intraday auctions Continuous Allocation:implicit intraday allocation	JAO SDAC SIDC/IDA SIDC

Explicit auctions are auctions at which participants give their offers in order to obtain access to CZC. The marginal CZC price is calculated at the end of the auction. If the demand for CZC is less than the offered quantity, the CZC price is equal to zero.

Implicit auctions mean an upgrade of the explicit CZC allocation since it allocates simultaneously CZC and electricity. Such auctions are executed by power exchanges and the system operators announce the quantities of available CZCs representing the trading limitation between two neighboring bidding zones.

Market coupling represents one of the methods for congestion management. It represents an implicit allocation of cross-border transmission capacities (CZCs) where CZCs are, together with energy bids, input parameter for the optimization algorithm between at least two neighboring bidding zones among which the congestion occurs.

Cross-Border Zonal Capacities

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