ACER provides guidance on the implementation of electricity long-term transmission rights for the Finnish-Estonian bidding zone border
ACER provides guidance on the implementation of electricity long-term transmission rights for the Finnish-Estonian bidding zone border
What is it about?
The EU Agency for the Cooperation of Energy Regulators (ACER) publishes today an opinion providing guidance to the national regulatory authorities (NRAs) on the implementation of electricity long-term transmission rights on the Finnish-Estonian bidding zone border.
What are the long-term transmission rights?
Long-term transmission rights are issued by TSOs and based on their available cross-zonal capacities. They provide cross-zonal trading opportunities for the forward time frames (e.g. month ahead, year ahead) and are issued to improve hedging opportunities where the long-term electricity market cannot provide these sufficiently on its own. Long-term transmission rights can be issued as physical or financial transmission rights, as options or obligations.
What are the main elements of ACER’s opinion?
The opinion clarifies open questions related to the approval process of terms and conditions or methodologies and clarifies requirements on the splitting of long-term cross-zonal capacity.
These clarifications are instrumental for Transmission System Operators (TSOs) on the Finnish-Estonian bidding zone border to start issuing long-term transmission rights.
ACER’s guidance facilitates the implementation of the Finnish and Estonian regulatory authorities’ decision on issuing long-term transmission rights on the relevant bidding zone border. The regulatory authorities based their decision on an assessment showing insufficient hedging opportunities for market participants of the Baltic member states. The aim of ACER’s guidance is for market participants to have access to needed hedging opportunities as soon as possible.