Countertrade
Countertrade is the exchange of electricity between bidding zones initiated by one or more TSOs to bring physical system parameters — typically cross-border power flows — back inside permitted limits while still honouring already-cleared market trades. Defined in CACM Regulation (EU) 2015/1222 Article 2. In Estonia, most cross-border congestion at the Estonia-Finland boundary is resolved through SDAC day-ahead clearing rather than countertrade.
Countertrade (vastukaubandus) is the exchange of electricity between bidding zones initiated by one or more TSOs to bring physical system parameters — typically cross-border power flows — back inside permitted limits while still honouring already-cleared market trades. The mechanism is defined in CACM Regulation (EU) 2015/1222 Article 2.
When it activates
Countertrade is one of two main TSO tools to relieve cross-border congestion that the day-ahead market did not foresee — the other is redispatching (ümberjaotamine). The TSO buys energy in the constrained-import zone and sells in the constrained-export zone, paying the price difference. The activated trades do not change the day-ahead clearing prices already paid to market participants; they are settled separately at the TSO's regulated socialised cost.
Estonia / Baltic context
Most cross-border congestion in the Estonian market is the Estonia-Finland boundary (Estlink 1 + 2). When that interconnector is constrained or out of service, EE prices diverge from FI prices — the situation typically resolves through the SDAC day-ahead clearing rather than countertrade. Countertrade is more commonly used at the Continental European synchronous-area boundaries where mesh-network flows are harder to predict than HVDC capacity.
Biežāk uzdotie jautājumi
- What is countertrade in electricity markets?
- Countertrade is the exchange of electricity between bidding zones initiated by one or more TSOs to bring physical system parameters — typically cross-border power flows — back inside permitted limits while still honouring already-cleared market trades. Defined in CACM Regulation (EU) 2015/1222 Article 2(26). It is a remedial action used when normal market clearing produces a flow that would breach grid security limits.
- What's the difference between countertrade and re-dispatch?
- Both are remedial actions a TSO takes after market clearing to keep the grid safe. Re-dispatch adjusts generation within a bidding zone (one plant ramps up, another ramps down). Countertrade is the cross-zonal version: the TSO buys energy in one zone and sells in another to relieve cross-border congestion. CACM Article 13 governs both.
- Why is countertrade rare in Estonia?
- Most cross-border congestion at the EE–FI (EstLink) and EE–LV boundaries is anticipated by the day-ahead Capacity Calculation Region and resolved during SDAC clearing — the auction algorithm itself reduces flows to within secure limits. Real-time countertrade by Elering is used for unanticipated congestion, e.g. when a forecast error or contingency creates an overload after gates have closed. It typically falls outside the Baltic CoBA scope and is reported as a 'special activation' in BTD.
- How does countertrade affect imbalance prices?
- Countertrade activations are settled separately from normal balancing-energy activations and do not feed into the per-MTU imbalance reference price (EBGL Article 55). The cost of countertrade is recovered through the TSO's congestion-management cost stream, not through BRP imbalance settlement.