Electricity transmission system operator LITGRID AB received 50,1 million euros in congestion income in 2021 – announced in the Congestion income report for 2021 prepared by the National Energy Regulatory Council (NERC) (download).
Congestion income originates from the price differences between bidding zones. In 2021, the largest congestion income LITGRID AB received due to the price difference between Lithuania and Sweden bidding zones (28,5 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 primarily used to invest in the transmission system, i.e. construction of interconnectors, strengthening the internal network, etc. This is to ensure the integration and development of the European Union electricity market.
LITGRID AB has indicated that the congestion income is used to guarantee 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 – 109,1 million euros – will be used to finance the synchronization project with continental Europe in the future.
The National Energy Regulatory Council should inform the Agency for the Cooperation of Energy Regulators (ACER) annually and publish a 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.