All trading capacity between the bidding areas is dedicated to Nord Pool Spot for implicit auction in the Elspot price calculation. This gives the market an advantage since the capacity is then available to all on equal terms. There are no explicit capacity auctions on these connections and no single party has sole access to any of the trading capacity.

The exception from this is the capacity between DK1 and area KONTEK which is the sum of capacities given to Nord Pool Spot – on a day to day basis - by participants having bought capacity on the Jutland - Germany connection (see also Cross Border Optimization). Physical capacity on this connection is 1200 MW from Jutland to Germany and 800 MW from Germany to Jutland. However, Elspot capacities can exceed these limits if there is traded capacity in opposite directions on monthly or yearly auctions.

The Transmission System Operators (TSOs) determine the trading capacity between each bidding area. Trading capacities for the next day are published on Nord Pool Spot's web site before 10:00 am.

Optimization of Elspot capacities

In addition to the capacities between the areas there are also internal bottlenecks in the system that limits the maximum flows that can be allowed. To optimize the use of the system Nord Pool Spot uses both capacities on individual interconnectors and sum limitations for several interconnectors affecting the bottlenecks in the price calculation.

Cut 2 in Sweden (Cut 2 SE) is the sum net export capacity available for Elspot south of cut 2 towards areas NO1, DK1 and DK2. The sum of export to NO1, DK1 and DK2 can not be higher than the Cut 2 limit plus import from NO1, DK1 and DK2. Hence the flow out of Sweden on each of the connections SE-NO1, SE-DK1 and SE-DK2 can be restricted by the cut 2 limit even though there is available capacity on each single connection.

Likewise cut B DK (out) and (in) is the sum net export/import capacity available between DK1 and areas NO1 and SE.

Optimization in Elspot ensures that if needed, capacity on the individual interconnectors are utilized up to those sum limits, but not above. Thus, the limits per interconnector (SE->NO1/DK1/DK2 and DK1<->NO1/SE) restrict the flow only when the sum max capacity is exceeded. For further information see Exchange information 13/2004.

In critical power balance situations Svenska Kraftnät will, in order to maintain power system security, temporarily modify the Elspot optimization procedure linked to exports south of cut 2 in Sweden. In such situations, the export capacity will be reduced for all individual interconnectors south of cut 2. For further information see Exchange information 73/2005.