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.

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 JAO S.A. website.

Switzerland – Germany

Explicit yearly, monthly and daily auctions

In the cross-border transmission system between Switzerland and Germany, the available grid capacities are distributed by the responsible Transmission System Operators TransnetBW, Amprion GmbH and Swissgrid via auctions. The Allocation Office JAO S.A. performs auctions.

Intraday implicit allocations

At the borders Switzerland – Germany and Switzerland – France a harmonized mechanism for Intraday implicit cross-border capacity allocation is used since June 2013. This is made possible by a cooperation of the Transmission System Operators (TSO) Amprion and TransnetBW in Germany, RTE in France and Swissgrid in Switzerland, the European Power Exchange EPEX SPOT SE and the clearing house European Commodity Clearing AG (ECC).

The allocation of Intraday Capacity via Deutsche Börse AG (DBAG) will remain in parallel.

The updated Intraday allocation rules for Switzerland - Germany can be found on the TransnetBW webseite.

Switzerland – France

Explicit yearly, monthly and daily auctions

RTE and Swissgrid have assigned the Allocation Office JAO S.A. to auction the available cross-border transmission grid capacities between Switzerland and France.

Intraday implicit allocations

At the borders Switzerland – France and Switzerland – Germany a harmonized mechanism for Intraday implicit cross-border capacity allocation is used since June 2013. This is made possible by a cooperation of the Transmission System Operators (TSO) Amprion and TransnetBW in Germany, RTE in France and Swissgrid in Switzerland, the European Power Exchange EPEX SPOT SE and the clearing house European Commodity Clearing AG (ECC).

The allocation of Intraday Capacity via Deutsche Börse AG (DBAG) will remain in parallel.

The updated Intraday allocation rules for Switzerland – France can be found on the RTE website.

Switzerland – Italy

Explicit yearly, monthly and daily auctions

In the cross-border transmission system between Switzerland and Italy, the available grid capacities are distributed by Rete Elettrica Nazionale SpA (Terna) and Swissgrid. This is done using auctions. The Allocation Office JAO S.A. performs auctions.

Intraday explicit auctions

In order to further enhance the use of cross border capacities, Terna and Swissgrid have agreed to perform intraday explicit auctions on the Switzerland – Italy Border. This Intraday mechanism operated by the Allocation Office JAO S.A. and will comprise two auction sessions.

Information regarding the processes and scheduling can be found in the technical balance group provisions.

Nomination system

The nomination system is used for nomination of the awarded monthly and annual capacities. The Nomination system is also used for information on maintenance works and maintenance windows. This applies solely for the direction from Switzerland to Italy.

Requirements for nomination procedure

To use the awarded capacities at the auctions, PTR Holders have to notify Counterparties. If no Counterparties are registered the use of allocated PTRs is not possible.

For PTRs nominations from Switzerland to Italy, PTR holder can designate counterparty(ies) allowed to make nominations to the neighbouring TSOs (A-to-N).

If the PTR holder is a signatory of a balance group contract he can designate a maximum of 20 counterparties, which are signatories of a dispatching contract in Italy. This applies as well, if the PTR holder is a signatory of a balance group contract and a dispatching contract. If the PTR holder is a signatory of a dispatching contract he can designate a maximum of 20 counterparties, which are signatories of a balance group contract.

The PTR holder has to communicate the counterparties to Swissgrid by using the counterparty management Form no later than 12:00 on Wednesday of week W-1. If this form is submitted in due time and the corresponding counterparty has confirmed the supply relationship with the counterparty confirmation form, the supply relationship can be used on Monday of week W (first execution day: Tuesday of Week W). Any counterparty can be modified every week by sending a new counterparty management form. Only those counterparties listed in the last form are relevant. For the use of the supply relationship, each counterparty must confirm the supply relationship with the counterparty confirmation form.

Please specify the number of «Master» and «Read-Only» accounts.

Please send the duly completed form «Agreement for Access to the Swissgrid Customer Portal» by registered post to the address indicated on the form. To speed up the process, we recommend that you also fax the form. After successful registration you will receive your user ID and PIN. A token is not needed. Please send the forms related to counterparties by mail too after the submission by e-mail or fax.

Switzerland – Austria

In the cross-border transmission system between Austria and Switzerland, the available grid capacities are distributed by VERBUND-Austrian Power Grid AG (APG) and Swissgrid. This is done using auctions. The Allocation Office JAO S.A. performs auctions.

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