Cross-border transmission capacity allocation mechanisms in South East Europe

South East Europe (SEE) is moving rapidly toward the creation of a regional electricity market and wholesale electricity market/power exchange that will improve competitive performance and increase liquidity and reliability. We describe the current applied and future possible congestion management methods in Europe including the SEE region. The paper identifies the potential benefits of a regional electricity and cross-border trade within the region and neighboring countries, and concludes with a brief discussion of policy issues.