Implementation aspects of coordinated auctioning for congestion management

Abstract

Auctioning for transmission capacity is one of the better-known means of congestion management. Unfortunately due to the fact that in meshed networks it might be infeasible its application is limited. Therefore its concept has been extended to coordinated auctioning, where instead of single interconnection transmission rights, being all transfer capacity required for a given transaction, are being auctioned. Such auction is a relatively new idea and there are still lots of issues that need to be addressed. How should the market players be charged for capacity - marginal price or their actual bid price? Should the contracts be firm? What about netting of opposite flows? How many auction rounds should there be? What kind of products could be traded? In this paper implementation aspects of coordinated auctioning are discussed and authors point of view is presented.