Poland: "Polish Optimisation Area" - better integration of transmission networks between North-Eastern European countries

25.04.2017

Polish, Lithuanian and Swedish national power grid operators (PGOs) in cooperation with the power exchanges involved are to modify the SE4-PL-LT Market Merger Mechanism. This will lead to better use of the cross-border connections between the above countries.

The Polish national power grid operator, the company Polish Transmission Networks (PSE), has announced that in order to provide more efficient exploitation of the infrastructure of the “SwePol Link” (HVDC connection between Poland and the Swedish market area SE4) and the “LitPol Link” (HVDC connection between Poland and Lithuanian market area LT), all the PGOs involved will establish the Polish Optimisation Area (POA) between Poland and SE4 and LT.

PSE explains that the PL-PLA transmission capacities between the Polish transmission network and the POA will represent obligatory “capacity allocation restrictions” resulting from the Polish grid system's condition, while the PLA-SE4 and PLA-LT transmission capacities will represent the available capacity of the relevant connection.

Since the present approach does not enable efficient usage of available transmission capacities, the PGOs decided to apply “ allocation restrictions” through the POA as part of their market coupling arrangements. “Allocation restrictions” are two-way, with independent values for directions to and from Poland.

The technical solutions for applying allocation restrictions through the POA were originally implemented in December 2015 along with the initiation of the market linkage mechanism at the LitPol connection and can currently be seen in the TGE and NordPool power exchange systems.

Polish, Swedish and Lithuanian PGOs expect  the POA mechanism to be activated at the beginning of July 2017. The SE4-PL-LT reorganisation agreement is currently under way. Any feedback by market participants may be submitted by 1 May.