ACER introduces the new ‘Central Europe’ electricity capacity calculation region

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ACER introduces the new ‘Central Europe’ electricity capacity calculation region

What is it about?

In November 2023, Transmission System Operators (TSOs) submitted to ACER their proposal to amend the definition of two European electricity Capacity Calculation Regions (CCR).

On 19 March 2024, with its Decision No 04/2024, ACER has approved the amendments to the Core and Italy North CCRs.

What are the capacity calculation regions and why are they important?

CCRs define the geographic areas (i.e. by listing bidding zone borders) across the EU where TSOs coordinate the capacity calculation and other processes (i.e. subject to regional methodologies).

Currently, there are eight CCRs in the EU: Nordic, Baltic, Hansa, Core, Italy North, Greece-Italy (GRIT), South-West Europe (SWE) and South-East Europe (SEE).

Having an efficient definition of CCRs benefits European consumers and producers:

  • It allows TSOs to run regional processes related to capacity calculation, re-dispatch and countertrading more effectively.
  • It optimises the provision of cross-zonal capacity, allows for more cross-zonal trade and ensures security of supply.

What has changed?

  • The Core CCR will include the Celtic interconnector, an undersea cable between Ireland and France. This will facilitate Ireland’s further integration into the European electricity market.
  • The Core and Italy North CCRs will be merged and form a new CCR called Central Europe. Initially, this merger will only apply to the day-ahead capacity calculation process. It will improve the coordination and efficiency of capacity calculation and allocation processes in continental Europe.

How did ACER contribute?

ACER assessed whether the TSOs’ proposal contributes to market integration, non-discrimination, effective competition, and the proper functioning of the EU electricity market.

To make an informed decision, ACER consulted with stakeholders in winter 2023-2024.

Next steps

The Celtic interconnector will become part the Core CCR once it becomes operational (expected in 2026).

The TSOs shall submit the day-ahead flow-based capacity calculation methodology for the newly formed Central Europe CCR by January 2025.