Energy Authority disagrees with the Swedish transmission system operator’s request for a derogation with respect to the allocation of transmission capacities

12.11.2021 10.38 | Published in English on 15.11.2021 at 10.40
Press release

The Energy Authority is of the opinion that the Swedish transmission system operator has no grounds for the proposed derogation regarding the allocation of transmission capacity at the Finnish-Swedish bidding zone border in 2022.

The Swedish TSO (Svenska kraftnät) has requested for a derogation with respect to the allocation of transmission capacity for the bidding zone border between Finland and Sweden (FI-SE3) for the year 2022 from the Swedish regulatory authority (Energimarknadsinspektionen). According to Regulation (EU) 2019/943 on the internal market for electricity, TSOs must make available to the electricity market all transmission capacity that can be provided with operational security. 

In particular, TSOs are not allowed to curtail cross-border trade in order to solve transmission bottlenecks within bidding zones. At least 70% of the operationally secure transmission capacity must be made available for cross-zonal trade, unless the regulatory authority grants a derogation where this is necessary for maintaining operational security.

The Swedish transmission system operator has already significantly curtailed the transmission capacity between Finland and Sweden during 2021, prior to its current request for a derogation. These curtailments have made it virtually impossible to transfer electricity from Finland to southern Sweden, despite market demand.

The Energy Authority considers the Swedish TSO not to have grounds for the derogation it has requested. The Energy Authority is also of the opinion that the fact that the company has already effectively curtailed the transmission capacities in violation of the Regulation does not justify the continuation of this violation.

More information: Director Antti Paananen, tel. +358 29 5050 013 and Leading Specialist Jarno Lamponen, tel. +358 29 5050 072, email addresses: [email protected]

Energy Authority’s position on Svenska kraftnät’s request for a derogation from the minimum level of capacity to be made available for cross-zonal trade for 2022 (pdf)

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