The EU Agency for the Cooperation of Energy Regulators (ACER) has reached a decision on the first amendment of the intraday capacity calculation methodology of the Core capacity calculation region (Core ID CCM) in cooperation with the region’s National Regulatory Authorities (NRAs) and Transmission System Operators (TSOs).

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

ACER amended its original Decision 02-2019 so as to enable the harmonisation of the capacity calculation principles at intraday level with the day-ahead capacity calculation methodology of the Core region.

ACER’s new Decision 06-2022 ensures that the application of the intraday capacity calculation methodology of the Core region is aligned with the expected Core Region day-ahead flow-based market coupling. The latter was expected to go live on 20th April but has once again been postponed.

The decision focuses mainly on the intraday transmission capacities in the transitional implementation period of one year. These are residual capacities after the single day-ahead market coupling (SDAC) process.

How did ACER contribute?

In February 2022, the regulatory authorities of the Core region asked ACER to decide on the intraday capacity calculation methodology.

ACER has carried out assessments and consulted relevant stakeholders to take an informed decision on any needed adjustments.

On this basis, ACER has amended the initial proposal of the 1st amendment of the Core ID CCM provided by the Core TSOs so as to further improve the efficiency, transparency and non-discriminatory principles of the intraday capacity calculation process, as well as to ensure its compatibility with day-ahead markets.

Read more on the ACER’s Decision 06-2022 on Core ID CC methodology and its Annexes.

On Friday 8 April 2022, electricity Transmission System Operators (TSOs) and Nominated Electricity Market Operators (NEMOs) from the Core region announced the postponement of the implementation of the Core flow-based market coupling project. This project is key to realise further benefits of EU electricity market integration; a process made even more important given the significant challenges currently facing European energy markets. The project (which was originally planned for completion in December 2020) has already been delayed twice. It was due to go live on 20 April 2022.

According to ACER’s information, the implementation has been prevented by three TSOs (supported by three NEMOs) expressing several concerns about the risk of insufficient cross-zonal capacities for go-live and the impact this would have on the market functioning. All other TSOs and NEMOs of the Core region, according to ACER’s information, considered that these risks were not significant enough to delay implementation.

The Core region comprises 13 Member States: Austria, Belgium, Czech Republic, Croatia, France, Germany, Hungary, Luxembourg, the Netherlands, Poland, Romania, Slovakia and Slovenia.

ACER acknowledges that a well-functioning electricity market is an important objective and that the risk of low cross-zonal capacities could seriously undermine it. However, ACER notes that

1) TSOs are under an obligation to offer a minimum amount of cross-zonal capacities (the so-called 70% target) and claim so far to comply with this obligation (see for example the ENTSO-E Bidding Zone Configuration Technical Report 2021); and

2) the risk of insufficient cross-zonal capacities cannot be avoided completely, as TSOs have the legally defined rights, during individual validation, to reduce cross-zonal capacity in case of operational security problems.

For these reasons, and based on the information available, ACER considers that the decision by the TSOs and NEMOs to postpone the go-live of the Core flow-based project up until now has not been properly justified.

Given the importance of this project for the EU’s electricity market integration process, ACER invites the national regulatory authorities (NRAs) of the Core region to investigate whether this failure of TSOs to adhere to the implementation deadline for now the third time constitutes a breach of their compliance obligations. ACER urges the TSOs of the Core region to minimise this delay and to implement the flow-based market coupling project as soon as possible.

On 31 March 2022, the EU Agency for the Cooperation of Energy Regulators (ACER) received the proposals submitted by all Transmission System Operators (TSOs) amending the implementation frameworks for the European balancing platforms for the automatic and manual frequency restoration reserve (aFRR, mFRR) and the imbalance netting. The amendment proposals detail the designation of entities performing the relevant functions of these platforms. The proposal on the implementation framework of the mFRR platform also includes technical amendments.

How does ACER contribute?

ACER ensures that the amendments proposed by all-TSOs are in line with the objectives of the Electricity Balancing Regulation and fulfil the legal obligations.  ACER also ensures that the different implementation frameworks and the set-up of the European balancing platforms are consistent.

To take an informed decision, ACER will run a public consultation from 16 May until 12 June 2022. ACER will also organise a public workshop on 31 May.

ACER will reach a decision by 30 September 2022.

Access the Public Notice.

What is the benefit?

The implementation frameworks for the European balancing platforms provide the rules for the efficient cross-border exchange of balancing energy from frequency restoration reserves with automatic activation (aFRR) and manual activation (mFRR) and for the imbalance netting.