ACER publishes four decisions creating a Nordic electricity balancing capacity market

17/08/2020


​The European Union Agency for the Cooperation of Energy Regulators (ACER) publishes today four decisions​ in line with the EU Regulation establishing a Guideline on Electricity Balancing, creating a single Nordic Balancing capacity market for the procurement and exchange of automatic frequency restoration reserves. 

By procuring balancing capacity, TSOs acquire the option to activate a generation or demand facility to balancing the electricity system in real time. By organising this common procurement and exchange of balancing capacity, the Nordic TSOs increase competition between providers reducing the overall cost for TSOs. 

  • Decision 22-2020 establishes a market-based allocation process of cross-zonal capacity for the exchange of balancing capacity. Particularly, the methodology regulates the amount of cross-zonal capacity to be made available for the exchange of balancing capacity. This allocation is based on a forecast of the day ahead (DA) market prices’ differences and actual balancing capacity bids. 
  • Decision 21-2020 establishes a methodology for the application of an allocation process of cross-zonal capacity for the exchange of balancing capacity. This methodology allows Transmission System Operators (TSOs) to apply the first methodology in procurement process of balancing capacity defined in the third decision. This decision defines the pre-conditions when TSOs are allowed to start exchanging balancing capacity which – most notably - is that cross-zonal capacity needs to be calculated pursuant the approved Nordic CCM methodology for the DA timeframe. 
  • Decision 19-2020 sets out harmonised rules for the procurement and exchange of balancing capacity. This methodology implements the common procurement of balancing capacity for the automatic Frequency Restoration Reserves (aFRR) on the Nordic LFC Block.
  • Decision 20-2020 decides on the exemption to TSOs for not allowing balancing service providers to transfer their obligations to provided balancing capacity. This exemption allows TSOs to only allow transfer of balancing capacity after the procurement process within bidding zones but not across bidding zones borders. 
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Access the decisions​.