CAO Central Allocation Office GmbH was the joint auction office allocating cross border electricity transmission capacity for borders between

Austria Austria, , bar, Östareich officially the Republic of Austria, is a country in the southern part of Central Europe, lying in the Eastern Alps. It is a federation of nine states, one of which is the capital, Vienna, the most populous ...

Czech Republic The Czech Republic, or simply Czechia, is a landlocked country in Central Europe. Historically known as Bohemia, it is bordered by Austria to the south, Germany to the west, Poland to the northeast, and Slovakia to the southeast. Th ...

Germany Germany, officially the Federal Republic of Germany (FRG),, is a country in Central Europe. It is the most populous member state of the European Union. Germany lies between the Baltic and North Sea to the north and the Alps to the sou ...

Hungary Hungary ( hu, Magyarország ) is a landlocked country in Central Europe. Spanning of the Carpathian Basin, it is bordered by Slovakia to the north, Ukraine to the northeast, Romania to the east and southeast, Serbia to the south, Croa ...

Poland Poland, officially the Republic of Poland, , is a country in Central Europe. Poland is divided into Voivodeships of Poland, sixteen voivodeships and is the fifth most populous member state of the European Union (EU), with over 38 mill ...

Slovakia Slovakia (; sk, Slovensko ), officially the Slovak Republic ( sk, Slovenská republika, links=no ), is a landlocked country in Central Europe. It is bordered by Poland to the north, Ukraine to the east, Hungary to the south, Austria to the ...

and

Slovenia Slovenia ( ; sl, Slovenija ), officially the Republic of Slovenia (Slovene: , abbr.: ''RS''), is a country in Central Europe. It is bordered by Italy to the west, Austria to the north, Hungary to the northeast, Croatia to the southeast, and ...

. CAO acted as commission agent of owners of

transmission network Electric power transmission is the bulk movement of electrical energy from a generating site, such as a power plant, to an electrical substation. The interconnected lines that facilitate this movement form a ''transmission network''. This is d ...

Background

The

Internal Electricity Market The Electricity Directive 20192019/944 is a Directive (European Union), Directive in EU law concerning rules for the internal market in electricity. Background The first Electricity Directive 96/92/EC on common rules for the internal market in ...

(IEM) was divided into seven sub-regions with the intention to foster market development first on a regional level to be connected into the real IEM in 2014. One of these predefined regions was the Central-Eastern Europe (CEE) consisting of Austria, Czech Republic, Germany, Hungary, Poland, Slovakia and Slovenia. CAO was established in 2008 by eight

transmission system operator File:Electricity grid simple- North America.svg, 380px, Simplified diagram of AC electricity grid from generation stations to consumers rect 2 243 235 438 Power station rect 276 317 412 556 Transformer rect 412 121 781 400 Electric power transmis ...

s (TSOs) from CEE:

50Hertz Transmission GmbH 50Hertz Transmission GmbH, formerly named Vattenfall Europe Transmission, is one of four transmission system operators for electricity in Germany, and is wholly owned by Eurogrid GmbH, indirectly owned and managed by the Belgian transmission sys ...

Austrian Power Grid Austrian may refer to: * Austrians, someone from Austria or of Austrian descent ** Someone who is considered an Austrian citizen, see Austrian nationality law * Austrian German dialect * Something associated with the country Austria, for example: ...

, ČEPS, a.s., Elektro-Slovenija d.o.o.,

TenneT TSO TenneT is a transmission system operator in the Netherlands and in a large part of Germany. ''TenneT B.V.'' is the national electricity transmission system operator of the Netherlands, headquartered in Arnhem. Controlled and owned by the Dutch go ...

, MAVIR ZRt.,

PSE S.A. PSE may refer to: Companies and organizations Stock exchanges *Pacific Stock Exchange, stock exchange in USA * Pakistan Stock Exchange, stock exchange of Pakistan * Palestine Securities Exchange, stock exchange in Palestine * Philippine Stock ...

and SEPS, a.s. to implement a regional coordinated congestion management procedure in the CEE.

History

From November 2009, CAO provided electricity market participants, active in the

Central Central is an adjective usually referring to being in the center of some place or (mathematical) object. Central may also refer to: Directions and generalised locations * Central Africa, a region in the centre of Africa continent, also known a ...

and

Eastern Europe Eastern Europe is a subregion of the European continent. As a largely ambiguous term, it has a wide range of geopolitical, geographical, ethnic, cultural, and socio-economic connotations. The vast majority of the region is covered by Russia, wh ...

region, with a single point of registration for capacity auctions in CEE and took over the role of the auction office for the 5 TSOs within the CEE region and carried out the coordinated Net transfer capacity (NTC) auction. In November 2010, CAO took over the entire organization of the auction process and capacity calculation coordination in the CEE region. This entails the introduction of one document of the common auction rules and auctions operation by CAO as the CEE single auction office in its web based auction ePortal. Available capacities are determined by applying an enhanced coordinated NTC assessment method based on a multilayer coordination of offered capacities. Coordinated capacity allocation process use auction algorithm based on maximization of

social welfare Welfare, or commonly social welfare, is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specificall ...

. From November 2012, CAO also provided a coordinated auction process on the borders between Croatia and Hungary and Croatia and Slovenia. On December 31, 2015 CAO became part of JAO (Joint Allocation Office) with headquarters in Luxembourg and the branch in Freising legally ceased to exist.

Outlook

Beside of operational activities which were developed in first years of CAO existence, CAO expertise in area of common capacity determination (grid calculation) and project management was used in projects (of TSOs, PXs, NRAs) contributing to creation of

IEM IEM can refer to: * ''I.E.M.'' (album) * Inborn error of metabolism * In-ear monitors, devices used by musicians, audio engineers and audiophiles to listen to music * Incredible Expanding Mindfuck (Music) * Information Engineering Methodology ...

Partnership

Beside of cooperation with TSOs as natural customers of CAO, the company had also connections with other participants of electricity market. CAO established a Customer Advisory Committee to discuss and coordinate with market participants in area of planned development of the congestion management process, new services and products and their specification and IT changes. This platform is used also to collect market participants proposals and feedback to CAO services. The

European Federation of Energy Traders The European Federation of Energy Traders (EFET) is an association of European energy traders in markets for wholesale electricity and gas. EFET was founded in 1999 in response to the liberalisation of electricity and gas markets within the Europe ...

cooperated with CAO in frame of this platform and also by direct contacts.

References

External links

*{{cite web, title=Official website , url=http://central-ao.com/ , archiveurl=https://web.archive.org/web/20150411062212/http://central-ao.com/ , archivedate=2015-04-11 , url-status=dead Electricity markets Electric power transmission systems Electric power transmission systems in Europe