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Forward Capacity Allocation

​This section contains information relevant for the implementation of Commission Regulation (EU) 2016/1719 of 26 September 2016 establishing a guideline on Forward Capacity Allocation (FCA Regulation).

The FCA Regulation received a positive vote by the Electricity Cross Border Committee in October 2015 and entered into force in October 2016. The FCA Regulation sets out rules regarding the type of long term transmission rights that can be allocated via explicit auction and the way holders of transmission rights are compensated in case their right is curtailed. The overarching goal is to promote the development of liquid and competitive forward markets in a coordinated way across Europe, and provide market participants with the ability to hedge their risk associated with cross-border electricity trading.

Read the Forward Capacity Allocation Regulation

Early Implementation

11/07/2017 – All TSOs’ proposal for a Common Grid Model Methodology and a Generation and Load Data Provision Methodology pursuant to Regulation 2016/1719

Articles 18 and 17 of Regulation 2016/1719 (“FCA Regulation”) require all TSOs t o prepare a Common Grid Model Methodology as well as a Generation and Load Data Provision Methodology, respectively. The definitive version of these proposals was submitted to the competent regulatory authorities for approval by all TSOs on or before 11 July 2017 (and to the Agency for the Cooperation of Energy Regulators (ACER) for information).

Links to both Methodologies as well as TSOs’ response to the comments received as part of the public consultation are provided below:​

14/04/2017 - ENTSO-E monitoring plan for the implementation of forward capacity allocation and the establishment and operation of the single allocation platform

The ENTSO-E proposal regarding a plan for the monitoring of the forward capacity allocation and the establishment and operation of the single allocation platform, in accordance with Article 63(2) of the FCA Regulation has been submitted to the Agency.

14/04/2017 – All TSOs’ common proposal for a set of requirements and for the establishment of the Single Allocation Platform and for the cost sharing methodology

The common all Transmission System Operators (TSOs) proposal for a set of requirements and for the establishment of the Single Allocation Platform (SAP) in accordance with Article 49 of the FCA Regulation and for a cost sharing methodology in accordance with Article 59 of the FCA Regulation has been submitted to all NRAs and the Agency.

14/04/2017 – All TSOs’ proposal for harmonised allocation rules for long-term transmission rights

The common Transmission System Operators (TSOs) proposal for Harmonised Allocation Rules (HAR) for long-term transmission rights in accordance with Article 51 of the FCA Regulation has been submitted to NRAs and ACER.

06/03/2017 - All TSOs’ proposal for a revised Generation and Load Data Provision Methodology and a revised Common Grid Model Methodology released for public consultation

Following the drafting of the Generation and Load Data Provision Methodology (GLDPM) and the Common Grid Model Methodology (CGMM) required by Article 16 and Article 17, respectively, of Regulation 2015/1222 by “All TSOs”, the GLDPM was approved by “All NRAs” on 11 January 2017. The CGMM is in the process of being resubmitted by each TSO to its NRA following the incorporation of changes set out in the NRAs’ amendment request of 11 January 2017.

Article 17 and Article 18, respectively, of Regulation 2016/1719 set out additional requirements with respect to the GLDPM and the CGMM which the drafting team has now incorporated into the documents. The revised GLDPM (GLDPM-v2) and revised CGMM (CGMM-v2) have now been approved for public consultation by “All TSOs” and are available from the ENTSO-E consultations hub.

GLDPM-v2 ConsultationCGMM-v2 Consultation

Early Implementation Project on the Harmonisation of Allocation Rules​

Whereas Regulation 2015/1222 addresses the day-ahead and intraday capacity calculation time-frames, Regulation 2016/1719 covers long-term time-frames (month-ahead, year-ahead). As far as the two Methodologies are concerned, the additional time-frames do not fundamentally alter the structure and content of the documents, but they do require some modifications clearly shown as “tracked changes” in the consultation documents.

Since the revision of the CGMM is based on the assumption that the amended CGMM (amended in the light of the NRAs’ amendment request) will be approved without additional modifications, the amended CGMM is provided in parallel with the CGMM-v2 as background material (both with tracked changes as well as with all changes having been accepted; a summary of the changes made is also made available).

In coordination with regulators and interested stakeholders, ENTSO-E has decided to begin the early implementation of a number of projects before the FCA Regulation was adopted.

One of these projects is the development, adoption and implementation of the Harmonisation of long term Allocation Rules (HAR).

What steps were followed?

The first HAR proposal was submitted and approved by the relevant NRAs in 2015 and applied for the auctions of 2016 (“2016 EU HAR”) as part of the FCA early implementation. After the ECBC’s positive vote on the FCA (30 October 2015) the relevant TSOs in coordination with regulators and interested stakeholders decided to update the EU HAR to further align with the FCA even before it enters into force and poses obligations on TSOs to do so. The purpose of the project was that the HAR be approved by the relevant national regulatory authorities in 2016, and therefore become applicable for 2017 yearly allocation.

The process of amending the HAR started in the beginning of 2016 and was concluded in the end of June 2016 with the unanimous approval by all TSOs on the main body of the HAR

Stakeholder Involvement

Stakeholders were involved in the early implementation process, including stakeholder meetings, public consultation and a dedicated workshop as part of the consultation.

Following the public consultation on the main body of the HAR, a document was prepared and approved by all TSOs summarising the comments from the public consultation. The document explains in details why the proposed changes were or were not incorporated into the final version of the document.

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