Forward Capacity Allocation

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The FCA Regulation

​​​​​​​​​​​​​The FCA Regulation provides rules on cross-zonal capacity calculation and allocation in the forward timeframe. These binding requirements implement and ensure a proper functioning of the integrated electricity market in the forward timeframe and regulate the activities of TSOs, national regulatory authorities and ACER.​

The core elements

​The core elements of the FCA Regulation are:

  • Forward calculation of capacities be​tween bidding zones​ for the year- and month-ahead market time frames. This coordinated calculation ensures reliable and transparent information to market participants. As a result of this calculation, TSOs provide the optimal amount of long-term cross-zonal capacities for allocation of long-term transmission rights (LTTRs). LTTRs allow market participants to hedge their positions on the long-term electricity markets.

  • Forward allocation of cross-zonal ca​​pacities​. Market participants need to be provided sufficient hedging opportunities and equal access to long-term markets. This is ensured by allocating LTTRs and harmonised allocation rules (HAR) across Europe.  

  • Establishment of a Sing​le Allocation Platform​. This platform has been developed by all European TSOs to facilitate the allocation of LTTRs to market participants. The platform applies the harmonised allocation rules and reduces barriers for all European market participants by providing them with equal access to this centralised platform, which issues all LTTRs in the European Union.​