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Capacity Optimization Model for Electricity Market Between Estonia and Latvia

This document outlines the capacity optimization model designed under SESAM for the electricity markets between Estonia and Latvia. It introduces a system with four bidding areas instead of one, facilitating imports from Latvia and Russia. The capacity auction mechanism operates implicitly, managing imports and exports efficiently. Curtailment leads to a pro-rata cut in bid volumes based on bid quantities, ensuring fair allocation. Elering is responsible for appointing EIC codes and sending capacities to SESAM, enabling effective flow reporting via ETSO ESS scheduled XML messages.

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Capacity Optimization Model for Electricity Market Between Estonia and Latvia

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  1. Capacity optimization between Estonia - LatviaIngrid ArusElectricity Market Development ManagerElering OÜ

  2. Capacity optimization designed model for SESAM

  3. Capacity optimization designed model for SESAM • Instead of one bidding area, four bidding areas are implemented • Imports and exports from Latvia and imports from Russia • Capacity auctioned in implicit way for importers and exporters • Curtailment leads to pro-rata cut in bid volumes automatically • In pro-rata curtailment, the larger the bidded quantity is, the more volume the bids get as compared to bids with smaller quantities

  4. Capacity optimizationdesigned model for SESAM • As EIC issuing authority, EIC codes must be appointed • for these areas by Elering • Elering must send capacities to SESAM for the ESTLINKimport/export areas using these EIC codes • Flows resulting from the price calculation will be • reported by ETSO ESS scheduling XML messages. Flows • are reported between ESTLINK and the 3 import/export • Areas • Importers and exporters of electricity must also be • appointed EIC codes by Elering • EIC codes are per party/area and not per trading • account

  5. Capacity Optimization method

  6. THANK YOU!www.elering.ee

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