PC_2024_E_08 - Public consultation on amending the harmonised electricity cross-zonal capacity allocation methodology

On 31 July 2024, ACER received a proposal from all Transmission System Operators (TSOs) for amending the harmonised methodology for cross-zonal capacity allocation for the exchange of balancing capacity or sharing of reserves.

This methodology provides a harmonised approach for effectively allocating 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 security of electricity supply.

The current methodology was approved by ACER in July 2023.

With this consultation, ACER aims to seek inputs from interested stakeholders on the TSOs’ proposal to:

• Better clarify the governance of the market-based process, covering both its implementation and operation.
• Establish a process and governance framework to set different maximum limits for exchanging balancing capacity or sharing reserves.
• Amend the provisions to distribute congestion income among TSOs.
• Allow the possibility of delaying the implementation of the harmonised market-based process beyond 31 July 2026.

Read the survey's questions.

TSOs' proposal.

Explanatory document.

Privacy statement.

ACER expects to reach a decision on the amended methodology by 31 January 2025.