Congestion management

Targeted congestion management is a key priority for Swissgrid in line with its legal responsibility for reliable grid operation. Congestion arises when the demand for cross-border trading capacity exceeds supply. Congestion management involves preventive measures to manage the limited transmission capacity available. To avoid congestion, Swissgrid has the right to take special measures. Technical and economic measures are the tools used to prevent congestion. Such corrective measures are taken in order to keep the transmission grid stable and within load limits, and to avoid disruption in the interests of all customers.

Auctions
Why are auctions necessary? Among other things, the new Electricity Supply Act requires congestion in the cross-border network to be managed by allocating network capacities according to a market-oriented allocation procedure, i.e. by means of auctions. Since the second internal electricity market directive and the regulation on cross-border trade in electricity (EG-VO 1228/03) also provide for congestion management, market-based procedures, i.e. auctions, have been held for some time across Europe. Due to the advanced stage of liberalisation of the EU electricity market and the increase in cross-border energy flows throughout Europe, it is necessary to introduce a transparent, non-discriminatory system of congestion management at Swiss borders with other countries. This will make an important contribution to ensuring network security and the security of supply in Switzerland.

NTC values
One of the Transmission System Operators key tasks is to determine the Net Transfer Capacity (NTC) in the interconnected grid; this allows market players to carry out their energy trading without jeopardising the interconnected grid. The NTC is the maximum exchange programme between two areas which is consistent with the security standards of both areas and takes into consideration the technical imponderables of the future grid status. Along with the neighbouring TSOs, swissgrid determines the NTC values on all four Swiss borders on an annual, monthly and daily (d-2) basis.

Annualy determined NTC value

The annual determination of the NTC (Net Transfer Capacity) values is based on the following assumptions:

All grid elements are in operation The load flow is evenly spread over the operating resources

The annual NTC values are indicative only and may deviate from the corresponding D-2 NTC values.

Auction rules
These Auction Rules govern the terms and conditions for the auctioning of available transfer capacity, commonly for the regions of CWE, CSE and Switzerland. The relevant version of the Auction Rules are published on the CASC.EU Website.
http://www.casc.eu/en/Resource-center/CWE--CSE-and-Switzerland/Auction-Rules