The Influence of the Formation of a Regional Office for Coordinated Auctions of Cross Border Transmission Capacities in South East Europe

Abstract

In this paper, is describe coordinated auctions of cross-border transmission capacities between South East European Transmission system Operators through the operation of the regional company “Coordinated Auction Office in South East Europe” (SEE CAO). The main objective is to acquaint with the specific processes, functions, modules and contributions of the first regional company in the area of South-Eastern Europe. The importance of SEE CAO is reflected by upgrading previous unilateral auctions performed by each TSO on 50% of NTC (Net Transmission Capacity) following their national Auction Rules or bi-lateral auctions performed by two neighboring TSO (Transmission system operator) on 100% of NTC following bilateral Auction Rules to regionally coordinated auctions performed by SEE CAO, using one single set of the Auction Rules and the possibility for the traders to allocate cross-border capacity from Croatia to Turkey by using SEE CAO as one-stop-shop. At the end of the paper, the results of daily, monthly and annual auctions are presented via diagrams and give an overview of the results. Also, as a result, the auction data for 2018 and 2019 auctioned as well as the average prices for the same years are presented in the tables.