The importance of a sound bidding-zone review for the efficient functioning of the internal electricity market

Author (Person)
Author (Corporate)
Series Title
Series Details 2020/22, Number 22
Publication Date 2020
ISBN 9789290848905
ISSN 2467-4540
Content Type


An inadequate bidding zone configuration for the EU electricity market risks jeopardising the benefits of market integration for energy consumers, by increasing the need for costly remedial actions. According to the CACM Regulation, liquidity is one of the criteria for assessing different possible configurations in a bidding-zone review. The available evidence from Europe and the US does not seem to support the claim, often made, that larger bidding zones promote liquidity. While liquidity is important for the well-functioning of markets, it cannot promote competition if not supported by the capability of the physical network to transport flows within a bidding- zone. Therefore, what seems to be more relevant is the structure (concentration) of the sector with respect to the structure (congestions) of the network.

Source Link
Alternative sources
Related Links
ESO Records
/infotree/sites/ on line 267
" title="
Warning: Undefined array key "text" in /infotree/sites/ on line 267
" href="
Warning: Undefined array key "link" in /infotree/sites/ on line 267
Warning: Undefined array key "text" in /infotree/sites/ on line 267

Warning: Undefined array key "link" in /infotree/sites/ on line 268

Subject Categories
Subject Tags
International Organisations