Publication of Baltic TSOs report on Locational Marginal Pricing Study and data items as part of Bidding Zone Review study

Market

The wholesale electricity market in Europe is designed using a zonal system, as is put down in the Regulation (EU) 2019/943 on the internal market for electricity ("Electricity Regulation"). Under this system, zones are formed in which unrestricted trade amongst market participants is made possible, called Bidding Zones (BZ). According to article 14 of the Electricity Regulation, BZ borders shall be based on long-term, structural congestions in the transmission network. To ensure an optimal configuration of BZs which maximizes economic efficiency while maintaining security of supply, a Bidding Zone Review ("BZR") shall be carried out.

On 24th November 2020 with decision 29/2020 ACER has both amended and adopted BZR methodology and assumption that are to be used in the BZR process for alternative bidding zone configurations. This Methodology determines how TSOs will assess alternative BZ configurations, which includes an LMP (Locational marginal pricing) analysis (article 11) and technical specifications and timeline of the data request for LMP analysis (Annex 2). Baltic TSOs due to synchronization with CE (Central Europe) postponed LMP analysis and were required to deliver the results of the LMP analysis as required under Annex 2 of the ACER decision as soon as the results of dynamic studies become available.

Nodal simulations were performed in Plexos market modelling tool. In total, simulation model for the Baltic region includes 55 generators, 79 lines, 51 nodes and 76 critical network elements and contingencies. As Baltic's electricity grid has interconnectors with Nordic and Central Europe (Poland) markets the Baltics LMP model also includes additional lines, generators, and nodes from these countries. This will create more realistic and reliable LMP model and results for the Baltics.

The Baltic TSOs Report on the Locational Marginal Pricing Study of the BZR Methodology provides insights into the methodology, assumptions and results of the LMP analysis for the BZRR (Baltics Bidding Zone Review Region) in line with Article 11 of Annex I of the ACER Decision No. 29/2020. The report provides information on:

  • The assumptions applicable to the Baltics BZRRs for LMP calculations,
  • The market and grid assumptions, the simulation chain and the results of the LMP calculations as performed for Baltics BZRR,

According to Article 16 of the Bidding Zone Review Methodology, TSOs shall publish all inputs for the BZR no later than four months after the BZR starts, and all outputs of the BZR no later than one month after the BZR ends. Moreover, Article 16 states the status of certain information as confidential under a given jurisdiction shall not prevent that information from being published in another jurisdiction. The BZR Methodology, and a later ACER decision, put an obligation on TSOs and ENTSO-E to publish data related to the Locational Marginal Pricing study.

TSOs are publishing the following data sets:

  • ERAA 2021 model, and
  • LMP results, including nodal granularity, flows in network, constraints and shadow prices, cleared generation/storage.

Report on the Locational Marginal Prices Study of the Bidding Zone Review Process in Baltics can be found here.

Interested stakeholders can access the data sets:

Climate year 1989:
Climate year 1995:
Climate year 2009:

Disclaimer: The information provided in the report shall not in any circumstances be interpreted as a price forecast by TSOs. The results should be solely understood as a simulation result of the LMP Study according to the BZR Methodology and serve only for the purposes of BZR Study.