Regulation establishing a Guideline on Capacity Allocation and Congestion Management - CACM (Regulation on market coupling)

 


 

 

Commission Regulation (EU) 2015/1222 of 24 July 2015 establishing a Guideline on Capacity Allocation and Congestion Management - CACM (Regulation on market coupling), sometimes called also as the 'CACM Guideline', has entered into force on 14 August 2015.

 

The target model for capacity calculation as defned in the CACM specifes that Transmission System Operators (TSOs) need to apply a flow-based capacity calculation method, except in cases where the electricity networks are not meshed and such a method would not add value compared to a coordinated NTC capacity calculation method.

 

Both capacity calculation methods should be based on an EU-wide Common Grid Model and need to be applied in a coordinated way within Capacity Calculation Regions - CCRs (ACER/CEER Annual Report on the Results of Monitoring the Internal Electricity and Natural Gas Markets in 2014, November 2015, p. 153).

 

CACM establishes a day-ahead firmness deadline and a related compensation regime for long-term transmission rights curtailed after such deadline.

 

 

CACM objectives

 

 

Article 3 of the CACM defines the objectives of this important piece of the European energy market legal framework accentuating the CACM aims at:

 

(a) promoting effective competition in the generation, trading and supply of electricity;

 

(b) ensuring optimal use of the transmission infrastructure;

 

(c) ensuring operational security;

 

(d) optimising the calculation and allocation of cross-zonal capacity;

 

(e) ensuring fair and non-discriminatory treatment of Transmission System Operators (TSOs), NEMOs, the Agency for the Cooperation of Energy Regulators (ACER), regulatory authorities and market participants;

 

(f) ensuring and enhancing the transparency and reliability of information;

 

(g) contributing to the efficient long-term operation and development of the electricity transmission system and electricity sector in the Union;

 

(h) respecting the need for a fair and orderly market and fair and orderly price formation; (i) creating a level playing field for NEMOs;

 

(j) providing non-discriminatory access to cross-zonal capacity.

 

Recital 27 to the CACM underlines, as the objective of the Regulation, the establishment of single day-ahead and intraday coupling, which "cannot be successfully achieved without a certain set of harmonised rules for capacity calculation, congestion management and trading of electricity."

 

Recitals 28 and 29 develop this thread accentuating, respectively, that "single day-ahead and intraday coupling should only be implemented stepwise", and that the single day-ahead and intraday coupling require the introduction of harmonised maximum and minimum clearing prices.

 

 

Binding subsidiary instruments to be developed under CACM

 

 

According to the CACM Regulation, the following pan-European tasks will have to be delivered during 2015 and 2016.

 

ENTSO-E Market Committee meetings will be used to discuss the corresponding "all TSOs" decisions and work on these has started already (see ENTSO-E draft Work Programme 2015 through December 2016, p. 12): •

 

- Determination of Capacity Calculation Regions - CCR (Article 15(1)),

 

- Day-ahead firmness deadline (Article 69) expected November 2016,

 

CACM Regulation which implements Regulation (EC) No 714/2009 can amend only non-essential elements of Regulation (EC) No 14/2009 pursuant to Article 8(5) of that Regulation.

 

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

 

 

- Intra-day cross-zonal gate opening and closure time (Article 59(1)) expected November 2016,

 

- Requirements for price coupling algorithm (Article 37(1)) expected for March 2016,

 

- Requirements for continuous matching algorithm (Article 37(1)) expected for March 2016,

 

- Generation and load data provision (Article 16) expected May 2016,

 

- CGM methodology (Article 17) expected May 2016,

 

- Congestion income distribution methodology (Article 73) expected July 2016,

 

- Monitoring activities of ENTSO-E (Article 82)–Monitoring plan expected for January 2016, activities continuous.

 

Joint ACER-CEER response to European Commission's Consultation on a new Energy Market Design of 07 October 2015 (p. 24) also underlines the CACM envisages a number of binding subsidiary instruments to be adopted at a later stage.

 

According to the CACM, the adoption of such instruments is entrusted to the National Regulatory Authorities of the European Union Member States (NRAs).

 

In the case of binding subsidiary instruments having a EU-wide scope of application, this requires NRAs to decide unanimously on the adoption of identical legal acts in all national legal systems within a six-month period, after which the responsibility is transferred to the ACER.

 

 


 

 

 

Documentation

 

 

All NEMOs’ proposal for products that can be taken into account by NEMOs in intraday coupling process in accordance with Article53 of Commission Regulation (EU) 2015/1222 of 24 July 2015 establishing a guideline on capacity allocation and congestion management, 14 February 2017

 

All NEMOs’ proposal for products that can be taken into account by NEMOs in single day-ahead coupling process in accordance with Article 40 of Commission Regulation (EU) 2015/1222 of 24 July 2015 establishing a guideline on capacity allocation and congestion management, 14 February 2017

 

All NEMO’s proposal for harmonised maximum and minimum clearing prices for Single Day Ahead Coupling in accordance with Articles 41(1) of Commission Regulation (EU) 2015/1222 of July 2015 establishing a guideline on capacity allocation and congestion management, 14 February 2017

 

All NEMO’s proposal for harmonised maximum and minimum clearing prices for Single Intra Day Coupling in accordance with Article 54(2) of Commission Regulation (EU) 2015/1222 of July 2015 establishing a guideline on capacity allocation and congestion management, 14 February 2017

 

All TSOs' proposal for intraday cross-zonal gate opening and gate closure times in accordance with Article 59 of Commission Regulation (EU) 2015/1222 of 24 July 2015 establishing a guideline on capacity allocation and congestion management, 18 April 2016 – Draft for consultation

 

All TSOs' proposal for the day-ahead firmness deadline (DAFD) in accordance with Article 69 of the Commission Regulation (EU) 2015/1222 of 24 July 2015 establishing a guideline on capacity allocation and congestion management, 07 April 2016

 

Draft methodology for calculating Scheduled Exchanges resulting from single intraday coupling, 04.10.2016

 

Draft methodology for calculating Scheduled Exchanges resulting from single day-ahead coupling, 04.10.2016

 

 

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Last Updated on Friday, 28 April 2017 20:44
 

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