Congestion cost allocation in the framework of Art.16(13) of the electricity regulation

The outcome of the electricity market may result in power flows over transmission elements (lines, transformers, PSTs) exceeding the available capacities of these elements. Related congestion management costs (i.e. redispatch costs and countertrading cost) already today represent a non-negligible part of the total system cost. Currently, the congestion management cost is carried by the electricity consumers of the zone in which the congestion occurs. However, congestion may not only be due to internal exchanges but also to loop flows or cross-zonal exchanges. The congestion cost should thus be shared between those responsible of the congestion. The need to define a methodology for redispatching and countertrading cost sharing is reaffirmed in Regulation (EU) 2019/943. The goal of this study is to fasten the implementation of a congestion cost allocation methodology by proposing and evaluating several options in the methodologies to share among TSOs the costs of redispatch and countertrading, in particular for the mapping of the overall costs of remedial actions to congested network elements.

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“The study is carried out for the European Commission and expresses the opinion of the organisation having undertaken them. To this end, it does not reflect the views of the European Commission, TSOs, project promoters and other stakeholders involved. The European Commission does not guarantee the accuracy of the information given in the study, nor does it accept responsibility for any use made thereof.”