Forward capacity allocation

'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).

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

ACER Decision 14/2021 on the Long-Term Capacity Calculation Methodology of the Core Capacity Calculation Region

Annex I

Annex II

2 December 2020

ACER Decision No 32/2020 of 2 December 2020 approving the SEE CCR TSOs’ proposal for the methodology for splitting long-term cross-zonal capacity

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

First joint report on the progress and potential problems with the implementation of intraday and day-ahead coupling as well as forward capacity allocation, ENTSO-E, August 2018 

ACER consults on the capacity calculation methodology for the long-term timeframe in between Denmark, Finland and Sweden, 27 August 2019

ENTSO-E website on forward capacity allocation
 

Forward Capacity Allocation Platform 

Capacity allocation

Firmness of allocated cross-zonal capacity