ACER decides on the long-term capacity calculation methodology in 13 EU Member States

Electricity Pillars

ACER decides on the long-term capacity calculation methodology in 13 EU Member States

What is it about?

The EU Agency for the Cooperation of Energy Regulators (ACER) has reached a decision on the proposal for the long-term capacity calculation methodology of the Core capacity calculation region (Core LT CCM) in cooperation with the regional regulatory authorities and transmission system operators (TSOs).

The Core region comprises of 13 countries: Austria, Belgium, Czech Republic, Croatia, France, Germany, Hungary, Luxemburg, the Netherlands, Poland, Romania, Slovakia and Slovenia.

The calculation methodology promotes effective longterm crosszonal electricity trade by calculating reliable capacities and making them available to market participants at an early stage.

As such, long-term capacity calculation allows for longterm planning and provides hedging opportunities.

In particular, the methodology will apply:

  • in the yearly and monthly time frame

  • a flow-based approach, compatible with the Core day-ahead capacity calculation methodology

  • multiple grid scenarios for the calculation of flow-based parameters

  • flow-based parameters for explicit flow-based long-term auctions

  • in 3 years from now: starting from the yearly auctions for 2025 and the monthly auctions for January 2025

How did ACER contribute?

In April 2021, the Core regulatory authorities for energy asked ACER to decide on the methodology.

In the past 6 months, ACER has carried out additional analyses and consulted with relevant stakeholders to take an informed decision.

Following these consultations, the Agency has amended the initial Core TSO proposal to improve the efficiency, transparency and non-discrimination of the long-term capacity calculation process, as well as to ensure its compatibility with day-ahead and intraday markets.

Read more on the ACER’s Decision 14-2021 on Core LT CC methodology and its Annexes.