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Capacity optimization between Estonia - Latvia Ingrid Arus Electricity Market Development Manager Elering OÜ Capacity optimization designed model for SESAM 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 Capacity optimization designed 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 ESTLINK import/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 Capacity Optimization method Cross-border capacity limits for PX Trade (XB max) NPS SESAM Cross-border bids (NPS) All cross-border import and export bids are accepted for spot-price calculation Bids to PX Trade Imp < XB max (import) Exp < XB max (export) Bid- cutting until Imp = XB max (import) and Exp = XB max (export) Accepted cross-border bids for spot-price calculation NO YES THANK YOU! www.elering.ee