Nordic regulators request more time to agree on the amended methodology for electricity balancing
Nordic regulators request more time to agree on the amended methodology for electricity balancing
What is it about?
The national regulatory authorities (NRAs) of the Nordic Capacity Calculation Region requested from ACER an extension of six months to agree on the Nordic Transmission System Operators’ (TSOs’) proposed amendment to the market-based cross-zonal capacity allocation methodology.
The Nordic Capacity Calculation Region comprises the following 3 countries: Denmark, Finland and 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?
ACER intends to decide promptly on this request from the Nordic NRAs.