Europe’s long-term electricity market relies on so-called long-term transmission rights (LTTRs), which allow market participants to hedge their exposure across bidding zones. The allocation of those LTTRs is currently not coordinated across different borders, which leads to inefficiencies in some capacity calculation regions (CCRs).
ACER approved on 22 March 2023 three proposals from Transmission System Operators’ (TSOs) to amend the forward capacity allocation methodologies on:
- Single allocation platform, including the methodology for sharing costs for its establishment, development and operation (SAP);
- Congestion income distribution (CID); and
- Sharing costs incurred to ensure firmness and remuneration of LTTRs (FRC).
ACER considers these approved methodologies to be a key step towards an integrated and efficient long-term electricity market. In particular, they will enable the implementation of the flow-based capacity allocation for the long-term market in the Core and the Nordic capacity calculation regions.
