Coordinated auctioning of cross-border capacity: an implementation

Coordinated auctioning (CA) is an explicit auction mechanism for cross-border transmission capacity. Currently, cross-border capacity is allocated in Europe through independent auctions at each border. CA is envisioned as the most effective improvement from that current situation, in terms of increased efficiency versus added complexity. It is designed to manage congestion at the international level while leaving each control area responsible for the management of its internal congestions. The goal of this paper is to detail a proposed implementation of CA. After recalling CA's principles, we present a new distributed methodology for computing its inputs: zonal power transfer distribution factors (PTDF) and border capacities (BC).