ENTSO-ECapacity Allocation & Congestion Management
The Guideline on Capacity Allocation and Congestion Management sets out the methods for calculating how much space can market participants use on cross border lines without endangering system security. It also harmonises how cross border markets operate in Europe to increase competitiveness but renewables’ integration. CACM is the cornerstone of a European single market for electricity.
Published Regulation
The published network codes become regulations. Use this section for a handy way to jump to a particular article of the network code.
COMMISSION REGULATION (EU) 1222/2015
establishing a guideline on capacity allocation and congestion management
- Article 1 - Subject matter and scope
- Article 2 - Definitions
- Article 3 - Objectives of capacity allocation and congestion management cooperation
- Article 4 - NEMOs designation and revocation of the designation
- Article 5 - NEMOs designation in case of a national legal monopoly for trading services
- Article 6 - NEMO designation criteria
- Article 7 - NEMO tasks
- Article 8 - TSOs' tasks related to single day-ahead and intraday coupling
- Article 9 - Adoption of terms and conditions or methodologies
- Article 10 - Day-to-day management of the single day-ahead and intraday coupling
- Article 11 - Stakeholder involvement
- Article 12 - Consultation
- Article 13 - Confidentiality obligations
- Article 14 - Capacity calculation time-frames
- Article 15 - Capacity calculation regions
- Article 16 - Generation and load data provision methodology
- Article 17 - Common grid model methodology
- Article 18 - Scenarios
- Article 19 - Individual grid model
- Article 20 - Introduction of flow-based capacity calculation methodology
- Article 21 - Capacity calculation methodology
- Article 22 - Reliability margin methodology
- Article 23 - Methodologies for operational security limits, contingencies and allocation constraints
- Article 24 - Generation shift keys methodology
- Article 25 - Methodology for remedial actions in capacity calculation
- Article 26 - Cross-zonal capacity validation methodology
- Article 27 - General provisions
- Article 28 - Creation of a common grid model
- Article 29 - Regional calculation of cross-zonal capacity
- Article 30 - Validation and delivery of cross-zonal capacity
- Article 31 - Biennial report on capacity calculation and allocation
- Article 32 - Reviewing existing bidding zone configurations
- Article 33 - Criteria for reviewing bidding zone configurations
- Article 34 - Regular reporting on current bidding zone configuration by ENTSO for Electricity and the Agency
- Article 35 - Coordinated redispatching and countertrading
- Article 36 - General provisions
- Article 37 - Algorithm development
- Article 38 - Objectives of the price coupling algorithm
- Article 39 - Inputs and results of the price coupling algorithm
- Article 40 - Products accommodated
- Article 41 - Maximum and minimum prices
- Article 42 - Pricing of day-ahead cross-zonal capacity
- Article 43 - Methodology for calculating scheduled exchanges resulting from single day-ahead coupling
- Article 44 - Establishment of fallback procedures
- Article 45 - Arrangements concerning more than one NEMO in one bidding zone and for interconnectors which are not operated by certified TSOs
- Article 46 - Provision of input data
- Article 47 - Operation of single day-ahead coupling
- Article 48 - Delivery of results
- Article 49 - Calculation of scheduled exchanges resulting from single day-ahead coupling
- Article 50 - Initiation of fallback procedures
- Article 51 - Objectives of the continuous trading matching algorithm
- Article 52 - Results of the continuous trading matching algorithm
- Article 53 - Products accommodated
- Article 54 - Maximum and minimum prices
- Article 55 - Pricing of intraday capacity
- Article 56 - Methodology for calculating scheduled exchanges resulting from single intraday coupling
- Article 57 - Arrangements concerning more than one NEMO in one bidding zone and for interconnectors which are not operated by certified TSOs
- Article 58 - Provision of input data
- Article 59 - Operation of single intraday coupling
- Article 60 - Delivery of results
- Article 61 - Calculation of scheduled exchanges resulting from single intraday coupling
- Article 62 - Publication of market information
- Article 63 - Complementary regional auctions
- Article 64 - Provisions relating to explicit allocation
- Article 65 - Removal of explicit allocation
- Article 66 - Provisions relating to intraday arrangements
- Article 67 - Explicit requests for capacity
- Article 68 - Clearing and settlement
- Article 69 - Proposal for day-ahead firmness deadline
- Article 70 - Firmness of day-ahead capacity and allocation constraints
- Article 71 - Firmness of intraday capacity
- Article 72 - Firmness in the event of force majeure or emergency situations
- Article 73 - Congestion income distribution methodology
- Article 74 - Redispatching and countertrading cost sharing methodology
- Article 75 - General provisions on cost recovery
- Article 76 - Costs of establishing, amending and operating single day-ahead and intraday coupling
- Article 77 - Clearing and settlement costs
- Article 78 - Costs of establishing and operating the coordinated capacity calculation process
- Article 79 - Costs of ensuring firmness
- Article 80 - Cost sharing between NEMOs and TSOs in different Member States
- Article 81 - Delegation of tasks
- Article 82 - Monitoring of the implementation of single day-ahead and intraday coupling
- Article 83 - Transitional provisions for Ireland and Northern Ireland
- Article 84 - Entry into force
Implementation - Making the code a reality
Capacity calculation region methodologies
Use the page to keep track of the methodologies received by the respective CCR.
ViewMCSC - Market Coupling Steering Committee
The aim of the Market Coupling Steering Committee is to achieve a truly integrated European electricity market.
ViewBidding Zone Review
To make the information accessible and transparent for stakeholders, key presentation materials, recordings, questions & feedback is published here.
ViewCACM related Deliverables
European Stakeholder Committee
Market
Last Meeting Documents
History & Development of the network code
Below you will find the Frequently asked questions relating to the network code Capacity Alloc. & Congestion Management.
CACM sets out the methods for allocating capacity in day-ahead and intra-day timescales and outlines the way in which capacity will be calculated across the different zones. Putting in place harmonised cross border markets in all timeframes will lead to a more efficient European market and will benefit customers. These rules will provide the basis for the implementation of a single energy market across Europe.
CACM was the second network code to be developed by ENTSO-E and represents an important step in implementing a ‘Target Model’ for the design of European electricity markets. It has been developed through an open and transparent process involving stakeholders at every stage and therefore reflects a broad range of views.
CACM entered into force in August 2015. The entry into force of the CACM guideline marks the start of the formal implementation period, during which Europeans including Member States, ENTSO-E, TSOs, regulators, power exchanges, market participants will collaborate to develop the methodologies and tools described in CACM. Go to the dedicated section for more information on implementation projects and how stakeholders can be involved.
Download the final Capacity Allocation and Congestion Management regulation
Background
The network codes and related guidelines have been developed to help realise Europe’s three energy policy goals – of ensuring security of supply; creating a competitive Internal Electricity Market; and decarbonising the electricity sector. For this to happen, the network codes and related guidelines will be implemented and complied with across Europe.
Each code requires a series of steps to be taken before they can enter into force. This could be national decisions, the conclusion of regional agreements or the creation of more detailed methodologies. All market participants, DSOs, TSOs and regulators will be involved and there will be extensive development work and consultation required.
CACM sets out rules for calculating cross-border capacity, defining and reviewing bidding zones and operating day ahead and intraday markets. Many of the subjects included in the CACM are highly complex and there is relatively little operational experience on which to draw from (for example the flow-based method of capacity calculation). For this reason, CACM requires additional work and a series of methodologies to be jointly developed and approved by regulators after the code enters into force.
Related Documents and Links
Events
The tables below will serve as an archive for reference purposes of all previously released material and stakeholder meetings that took place during the development of CACM.
Stakeholder Group Meetings
Public Stakeholder Workshops
| Presentations | |
| Presentations Invitation Letter |
Documents related to the Stakeholder meetings:
- Stakeholder Group Terms of Reference (09/11/11)
- ENTSO-E Stakeholder information note (07/10/11)
For further information on CACM, please contact Marco Foresti.