'Forward capacity allocation' stands for the attribution of long-term cross-zonal capacity through an auction before the day-ahead timeframe (Article 2(1) of the Network Code on Forward Capacity Allocation).
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The forward capacity allocation enables long term cross zonal trade and provides market participants with long term cross zonal hedging opportunities against congestion costs and day ahead congestion pricing, compatible with bidding-zone delimitation.
Forward capacity allocation serves the allocation of long-term transmission rights (LTTRs) across Europe.
The task is organised by the Single Allocation Platform (SAP) operated by the Joint Allocation Office (JAO), a cooperation of 28 Transmission System Operators (TSOs) from 22 countries.
At end 2017 there were 30 borders in the EU with harmonised forward capacity allocation rules (ACER’s 6th Annual Report on Monitoring the Electricity and Natural Gas Markets, Main insights, p. 19).
According to the ENTSO-E Market Report 2019 (August 2019, p. 5), in 2019, the SAP carried out more than 1,000 auctions in 73 bidding zones with more than 300 market participants.
Regulatory chronicle
15 November 2021
ACER decides on the long-term capacity calculation methodology in 13 EU Member States
2 December 2020
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Documentation |
Network Code on Forward Capacity Allocation, Article 2(1)
ENTSO-E Market Report 2019, August 2019
ACER’s 6th Annual Report on Monitoring the Electricity and Natural Gas Markets, Main insights, p. 19
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Links |
ENTSO-E website on forward capacity allocation
Forward Capacity Allocation Platform
Firmness of allocated cross-zonal capacity