Technical profile is a set of interconnections or facilities linking two on more adjacent control areas, which have a common technical limit and represents limits for commercial transactions on congested interconnector.
Commercial profile is an interconnection linking two adjacent control areas. TSO’s determine individually available transmission capacities for theirs technical profiles, which are publish next by Auction Office in auction announcement.
Market participants attended in cross-border exchange place bids to the Auction Office in order to reserve transmission capacities in particular commercial profile between two adjacent control areas. Below figure represent technical profiles, which transmission capacities are currently offered in coordinated auctions and commercial profiles for which market participants submit their bids. The Allocation process is in an „explicit” type of process.
Decision whether to accept or to reject transmission capacity reservation bids, is taken during the calculation process in which bids with the highest prices are accepted taking into consideration constraints on the technical profiles.
Allocation process participants place bids to reserve transmission capacity on particular commercial profile and compete, not only with other bids placed to reserve transmission capacity on that commercial profile, but also with bids placed on other commercial profile on the same technical profile. Allocation process continues till all technical profiles are blocked.