On 31 July 2024, ACER received a proposal from Transmission System Operators (TSOs) to amend the harmonised methodology for cross-zonal capacity allocation for the exchange of balancing capacity or sharing of reserves.
What is the methodology about?
This methodology provides a harmonised approach for effective allocation of cross-zonal capacity for the exchange of balancing capacity or sharing of reserves. Having an optimised allocation of cross-zonal capacity is important to:
- Foster the integration of balancing capacity markets.
- Lower the costs of procuring balancing capacity (hence the costs for tariff payers).
- Ensure the security of electricity supply.
Why amend the methodology?
The current methodology was approved by ACER in July 2023. Amending the methodology is necessary to clarify the governance of the market-based process, covering both its implementation and operation. This aims to ensure the process runs efficiently and encourage more TSOs to apply it.
What are the next steps?
ACER expects to:
- Run a public consultation from 16 September to 14 October 2024 to collect views from stakeholders and inform its decision-making process.
- Reach a decision by 31 January 2025.
