ACER grants Nordic regulators more time to agree on the amended methodology for electricity balancing
ACER grants Nordic regulators more time to agree on the amended methodology for electricity balancing
What is it about?
On 19 December 2022, the national regulatory authorities (NRAs) of the Nordic Capacity Calculation Region (CCR) requested an extension to decide on the Nordic Transmission System Operators’ (TSOs’) proposed amendment to the market-based cross-zonal capacity allocation methodology.
On 14 April 2023, ACER granted an extension of six months to the Nordic CCR NRAs (Denmark, Finland, Sweden).
What is the market-based allocation process?
The market-based allocation process compares the market value of cross-zonal capacity for the electricity balancing capacity market with the forecasted market value for the day-ahead electricity market. It then allocates the capacity to the market that generates the most welfare by using the cross-zonal capacity, which:
- allows the integration of balancing capacity markets;
- creates welfare;
- lowers the costs for the procurement of balancing capacity;
- lowers the costs for tariff payers; and
- ensures security of supply.
What are the next steps?
Nordic NRAs have until 28 June 2023 to decide on the proposal of the Nordic TSOs’ for amendment to the market-based cross-zonal capacity allocation methodology.
Access the ACER Decision 09/2023 on the extension request for Nordic CCR.