All trading capacity between the Nordic and Baltic bidding areas is dedicated to Nord Pool for implicit auction in the day-ahead 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.
Trading capacities on all external interconnectors are also subject to implicit auction through NWE market coupling.
The transmission system operators (TSOs) determine the trading capacity between each bidding area. Trading capacities for the next day are published on Nord Pool's website at 10:00 CET.
Optimization of day-ahead capacities
In addition to capacities between areas, there are also internal bottlenecks in the system that limit the maximum flows that can be allowed. To optimize the use of the system, Nord Pool uses both capacities on individual interconnectors and sum limitations for several interconnectors affecting the bottlenecks in the price calculation.
Cut B DK in Denmark is an internal bottleneck in the north of Jutland. Cut B reflects the sum of net export/import capacity available for the day-ahead market north of Cut B towards areas NO2 and SE3.
The sum of import/export to/from DK1 equals the physical flow on the interconnectors DK1-NO2 and DK1-SE3. The import cannot be higher than the Cut B limitation. Hence the flow out of/into Denmark on each of the interconnectors can be restricted by the Cut B limit even though there is available capacity on each single interconnector.
Optimization in the day-ahead market ensures that if needed, capacity on the individual interconnectors are utilized up to those sum limits, but not above. Thus, the limits per interconnector (DK1<->NO2/SE3) restrict the flow only when the sum max capacity is exceeded. For further information, see exchange information 13/2004.