Targeted congestion management is a key priority for Swissgrid in line with its legal responsibility for reliable grid operation. Congestion arises when the demand for cross-border trading capacity exceeds supply. Congestion management involves preventive measures to manage the limited transmission capacity available. To avoid congestion, Swissgrid has the right to take special measures. Technical and economic measures are the tools used to prevent congestion. Such corrective measures are taken in order to keep the transmission grid stable and within load limits, and to avoid disruption in the interests of all customers.

Auctions

Why are auctions necessary?

Among other things, the new Electricity Supply Act requires congestion in the cross-border network to be managed by allocating network capacities according to a market-oriented allocation procedure, i.e. by means of auctions. Since the second internal electricity market directive and the regulation on cross-border trade in electricity (EG-VO 1228/03) also provide for congestion management, market-based procedures, i.e. auctions, have been held for some time across Europe. Due to the advanced stage of liberalisation of the EU electricity market and the increase in cross-border energy flows throughout Europe, it is necessary to introduce a transparent, non-discriminatory system of congestion management at Swiss borders with other countries. This will make an important contribution to ensuring network security and the security of supply in Switzerland.