Models
Bidding Zone
A Bidding Zone (also called a price area) is a core domain concept in the European energy market.
The ENTSO-e Harmonized Electricity Market Role Model defines a Bidding Zone as:
The largest geographical area within which market participants are able to exchange energy without capacity allocation.
In other words, it is an area within which electricity clears at a single day-ahead price; in the Nordics these are the Nord Pool price areas such as SE3 and NO1.