The term: 'capacity allocation' in the European Union Internal Electricity Market stands for the attribution of cross zonal capacity (Article 2(4) of the Regulation 543/2013 of 14 June 2013 on submission and publication of data in electricity markets and Article 2(66) of Regulation (EU) 2019/943 of the European Parliament and of the Council of 5 June 2019 on the internal market for electricity (recast)).
20 December 2021
ACER Recommendation on reasoned amendments to the Capacity Allocation and Congestion Management Regulation proposes changes to a wide range of topics, including capacity calculation
With regard to the compliance with Regulation (EC) No 714/2009, it is to be noted that this Regulation and its Annex I laying down 'Guidelines on the management and allocation of available transfer capacity of interconnections between national systems' require capacity allocation in case of congestion. Pursuant to Article 16(1) of Regulation (EC) No 714/2009, network congestion problems shall be addressed with non-discriminatory market-based solutions which give efficient economic signals to the market participants and transmission system operators involved. Pursuant to points 1 .2. and 1 .4. of Annex I to Regulation (EC) No 714/2009, there need be no capacity allocation procedure for access to a cross-border transmission service where there is usually no congestion, while appropriate congestion-management methods and arrangements, defined and agreed upon in advance, shall be implemented immediately by the TSOs if structural congestion appears. Further, pursuant to point 3.1. of Annex I to Regulation (EC) No 714/2009, capacity allocation at an interconnection shall be coordinated and implemented using common allocation procedures by the TSOs involved in cases where commercial exchanges between two countries (TSOs) are expected significantly to affect physical flow conditions in any third country. Regulatory authorities and TSOs shall ensure that no congestion-management procedure with significant effects on physical electric power flows in other networks is devised unilaterally.
Decision of the Agency for the Cooperation of Energy Regulators No 06/2016 of 17 November 2016 on the electricity transmission system operators' proposal for the determination of the capacity calculation regions
ACER Decision No 12/2020 of 17 June 2020 on the methodology for a co-optimised allocation process of cross-zonal capacity (COCZCA)
Annex I, Methodology for a co-optimised allocation process of cross-zonal capacity for the exchange of balancing capacity or sharing of reserves in accordance with Article 40(1) of the Commission Regulation (EU) 2017/2195 of 23 November 2017 establishing a guideline on electricity balancing
Principles for applying co-optimised cross-zonal capacity allocation
(1) The co-optimised allocation process shall be integrated within the SDAC algorithm and shall allocate cross-zonal capacities for the exchange of standard balancing capacity products or sharing of reserves following the objective in Article 9(2).
(2) The contracting period of standard balancing capacity bids exchanged with the application of co-optimisation shall be equal to or a multiple of the day-ahead market time unit and shall be less or equal to the total amount of day-ahead market time units of the concerned day.
(3) The validity period of bids from standard balancing capacity products used for co-optimised cross-zonal allocation shall be equal to the day-ahead market time unit.
(4) The settlement of the standard balancing capacity bids with the balancing service providers for where co- optimised cross-zonal allocation is applied shall be based on cross-border marginal pricing (pay-as- cleared).
(5) Cross-zonal capacities for the exchange of standard balancing capacity products or sharing of reserves from co-optimised cross-zonal allocation shall be exclusively provided to the respective platform, pursuant to Articles 19 to 21 of the EB Regulation, of the product they were allocated for.
(6) The process of releasing allocated cross-zonal capacity for the exchange of balancing capacity or sharing of reserves in accordance with Article 10(2) shall be coordinated between the balancing energy platforms pursuant to Articles 19 to 21 of the EB Regulation.
Notification process for the use of the co-optimised allocation process
Each TSO intending to apply co-optimised cross-zonal allocation shall notify TSOs of the same synchronous area three (3) months prior to entering into operation in accordance with Article 150 of the SO Regulation and inform all stakeholders and all TSOs through an announcement on the ENTSO-E website, at least three months prior to entering into operation. The announcement on the ENTSO-E website shall include a detailed description of the specifications in accordance with EB Article 38(2) as well as the type of standard balancing capacity product which will be exchanged or shared and foreseen date of entry into operation.