Scope and Legal Basis
The 8th Region stands for a regional approach for Congestion Management and Transmission Capacity Allocation in South East Europe. Following the example of the seven European Regions set up by Regulation (EC) 1228/2003, the 8th Region was established following a decision by the Ministerial Council of the Energy Community on 27 June 2008 with a view to implement a common procedure for electricity congestion management and transmission capacity allocation on regional level.
The volume of cross-border electricity trade is the key indicator for the level of true market integration. In 2004 electricity traded between the members of the 8th Region added up to only about 10% of final demand in South East Europe. Insufficient transmission interconnection capacity, lack of transparency and the great number of borders in combination with unharmonised transmission capacity auction mechanisms are the main reasons for limited cross border trading. With a view to overcome these barriers and boost integration of national electricity markets the concept of the 8th Region requires its members to implement a regionally coordinated procedure for electricity congestion management and transmission capacity allocation throughout the Region.
