'Cost of new entry’ (CONE) encompasses both fixed and variable cost of new entry.

         
          
                      New           


       

 

 

According to the Methodology for calculating the value of lost load, the cost of new entry and the reliability standard in accordance with Article 23(6) of Regulation (EU) 2019/943 of the European Parliament and of the Council of 5 June 2019 on the internal market for electricity (Annex I to the ACER Decision No 23/2020 of 2 October 2020 on the Methodology for calculating the value of lost load, the cost of new entry, and the reliability standard (VOL CONE RS)):

 

1. ‘fixed cost of new entry’ is the total annual net revenue per unit of de-rated capacity (net of variable costs) that a new capacity resource would need to receive over its economic lifetime in order to recover its capital costs and annual fixed costs;

 

2. ‘variable cost’ (‘variable cost of new entry’ (CONEvar) for new entries or ‘variable cost of renewal or prolongation’ (CORPvar) for existing capacity resources that are renewed or whose lifetime is prolonged), is:

  • in the case of a generation or storage resource, the average variable cost of generation over the economic lifetime of that resource. The variable cost of generation includes fuel costs, CO2 emission costs and other variable operating expenditures (other variable OPEX) over the expected duration of operation of the resource expressed in monetary units per generated MWh; or
  • in the case of a DSR resource, the average of the minimum market prices for activation of that particular capacity resource over the economic lifetime of that resource;

 

3. ‘other variable OPEX’ are non‐fuel or emission related operating costs and maintenance costs, that may be scheduled based on the operation of the capacity resource.

 

 

 

 

chronicle   Regulatory chronicle 

 

 

 

 

2 October 2020

 

ACER Decision No 23/2020 on the Methodology for calculating the value of lost load, the cost of new entry, and the reliability standard (VOL CONE RS)

 

Annex I, Methodology for calculating the value of lost load, the cost of new entry and the reliability standard in accordance with Article 23(6) of Regulation (EU) 2019/943 of the European Parliament and of the Council of 5 June 2019 on the internal market for electricity

 

Annex II Evaluation of responses to the public consultation on the Methodology for calculating the value of lost load, the cost of new entry, and the reliability standard


 

 

 

 

 

IMG 0744

    Documentation    

 

 

 

 

 

 

clip2

    Links