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NERC announces TSO congestion income report for 2020

Electricity transmission system operator LITGRID AB received 32,4 million euros congestion income in 2020 – announced in Congestion income report for 2020 prepared by the National Energy Regulatory Council (NERC) (download).

Congestion income originates from the prices difference between bidding zones. In 2020, the largest congestion income LITGRID AB received due to the price difference between Lithuania and Sweden bidding zones (more than 20,9 million euros). The resulting amount of price difference should be paid to the transmission operator by the exchange operator.

In accordance with the requirements of the legal acts of the European Union, the congestion income received by the transmission system operator should be directed primarily to be used to invest in transmission system, i.e. construction of interconnectors, strengthening internal network and other. This is the reason to ensure the integration and development of the European Union electricity market.

LITGRID AB pointed out that congestion income used guaranteeing the actual availability of the allocated capacity, for investment into the transmission network. In accordance with significant and large-scale investments in the National Energy Strategy, balance of unused congestion income – 62,5 million euros – will be used to finance the synchronization project with continental Europe in the future.

National Energy Regulatory Council should annually inform Agency for the Cooperation of Energy Regulators (ACER) and publish the report setting out the information on transmission system operator (TSO) congestion income and its actual use required by Regulation (EU) 2019/943 of the European Parliament and of the Council on the internal market for electricity.