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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).
The EU Agency for the Cooperation of Energy Regulators (ACER) is reviewing the all Transmission System Operators’ (TSOs’) proposals to amend the forward capacity allocation methodologies:
- Single allocation platform, including the methodology for sharing costs for its establishment, development and operation;
- Congestion income distribution; and
- Sharing costs incurred to ensure firmness and remuneration of LTTRs.
ACER considers a review of the methodologies to be a key step towards an integrated and efficient long-term electricity market. In particular, it will enable the implementation of the flow-based capacity allocation for the long-term market in the Core and the Nordic CCRs.
What are the next steps?
ACER has 6 months (until 28 March 2023) to decide on the TSOs’ proposals.
As part of its review, ACER seeks stakeholder input via:
- Public Consultation, which runs from 26 October to 23 November 2022; and
- Public Workshop on 17 November 2022.
