Baltic energy regulators request more time to agree on long-term capacity calculation methodology
Baltic energy regulators request more time to agree on long-term capacity calculation methodology
What is it about?
Under the EU’s Regulation on forward capacity allocation (FCA), the Baltic national regulatory authorities were required to decide on the capacity calculation methodology for long-term timeframes by 22 March 2025. This followed a proposal from electricity transmission system operators, submitted on 22 January 2025.
On 20 March 2025, the Baltic regulators (Estonia, Finland, Latvia, Lithuania, Poland and Sweden) requested from ACER a three-month extension to decide on the matter.
In their request, the regulators explained more time is needed to:
- assess the methodology’s compatibility with existing day-ahead and intraday capacity calculation methods;
- evaluate the technical constraints of the proposed allocation; and
- consider potential updates from Poland's electricity balancing market reform.
What is long-term capacity calculation?
Capacity calculation determines how much electricity can be safely and efficiently exchanged across borders in a given capacity calculation region. It ensures that available transmission capacity is calculated in a consistent and transparent way, supporting reliable cross-border electricity trading in both short- and long-term markets.
Long-term capacity calculation focuses on ensuring that there is enough capacity in the power grid to meet future demand over extended periods (months or even years). This supports the EU’s internal energy market by enabling forward electricity trading and allowing market participants to plan ahead and manage price risks.
What are the next steps?
ACER plans to act promptly on this request, aiming to reach a decision in May 2025.