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ACER publishes Decision on fallback procedures for Core Capacity Calculation Region

Monday, October 8, 2018

The Decision standardises shadow allocation rules into a single set and outlines the nature of transitional arrangements for the bidding zone borders of four market coupling regions

ACER published a Decision that revises the methodology proposed by transmission system operators (TSO) of thirteen Member States that will apply a coordinated calculation and allocation of the capacity between bidding zones (the Core Capacity Calculation Region) for establishing the rules for alternative capacity allocation and fallback procedures in the event that the single day-ahead coupling process is unable to produce results. The countries concerned are Austria, Belgium, Croatia, the Czech Republic, France, Germany, Hungary, Luxembourg, Netherlands, Poland, Romania, Slovakia and Slovenia.

For alternative capacity allocation, a shadow auction is proposed, such that when single day-ahead coupling fails, the cross-zonal capacity is auctioned as a standalone product, in contrast to single day-ahead coupling where it is auctioned combined with energy. The methodology was originally developed by the TSOs of the aforementioned countries and submitted for approval to their respective National Regulatory Authorities (NRAs). As NRAs could not reach an agreement, the case was referred to ACER. ACER introduced several amendments to the proposal, including the harmonisation of shadow allocation rules, which were composed of five different rules for each border zone under the original proposals.