Congestion income between Finland (FI) and Central Sweden (SE3).
Congestion income = commercial flow between FI and SE3 on the day ahead market [MWh/h] * absolute value of price difference between FI and SE3 [€/MWh].
Congestion originates in the situation where transmission capacity between bidding zones is not sufficient to fulfill the market demand and the congestion splits the bidding zones into separate price areas. Congestion income arises from the different prices that the sellers receive and the buyers pay when electricity flows from the higher price area to the lower price area. The seller acting in a lower price area receives lower price for electricity compared to the price the other party pays for electricity in the higher price area, and the power exchange receives surplus income, which it then pays to the Transmission System Operators (TSOs). The TSOs spend the received congestion income on increasing the transmission capacity on its cross-border interconnectors according to the EU regulation.