Balancing Energy Platforms

Balancing Energy Platforms

Implementation of methodologies related to the establishment of EU's balancing platforms

Implementation frameworks for balancing platforms

The Electricity Balancing (EB) Regulation governs the establishment of three different balancing platforms by requiring transmission system operators (TSOs) to propose implementation frameworks.

Those frameworks include:

  • governance structure
  • processes for operating the platform
  • timeline for its development.
 RR platformmFRR platform (MARI)aFRR platform (PICASSO)Imbalance Netting (IN) process platform
What is it about?

Each TSO using balancing energy from replacement reserves (RR) to balance its system can use this platform to activate bids from across Europe (instead of activating only bids from service providers connecting to its system).

Therefore, the platform allows TSOs to exchange balancing energy from replacement reserves with neighbouring TSOs.

Each TSO using balancing energy from frequency restoration reserves with manual activation (mFRR) for balancing its system can use this platform to activate bids from across Europe (instead of activating only bids from balancing service providers connecting to its system).

Therefore, the platform allows TSOs to exchange balancing energy from frequency restoration reserves with manual activation with its neighbouring TSOs.

Each TSO using balancing energy from frequency restoration reserves with automatic activation (aFRR) for balancing its system can use this platform to activate bids from across Europe (instead of activating only bids from balancing service providers connecting to its system).

Therefore, the platform allows TSOs to exchange balancing energy from frequency restoration reserves with automatic activation with its neighbouring TSOs.

Through this platform, TSOs avoid the simultaneous activation of frequency restoration reserves in opposite directions by netting their demand for balancing energy from frequency restoration reserves.

 

Legal basis

Article 19(1) of the EB Regulation

Article 20(1) of the EB Regulation

Article 21(1) of the EB Regulation

Article 22(1) of the EB Regulation

Responsibility

All TSOs performing the reserve replacement (RR) process (pursuant to Part IV of Commission Regulation (EU) 2017/1485)

All TSOs

All TSOs

All TSOs

Current status

The implementation framework was approved by the relevant regulatory authorities in August 2021 and amended in 2023.

The implementation framework was approved by ACER in January 2020 and amended in September 2022.

The implementation framework was approved by ACER in January 2020 and amended in September 2022 and July 2024.

The implementation framework was approved by ACER in June 2020 and amended in September 2022.

Implementation

The RR platform has been operational since January 2020 but is expected to be discontinued by the end of 2025. Participating TSOs have assessed that  regulatory requirements (such as 15-minute settlement periods and a 30-minute cross-zonal gate closure) would make the RR process increasingly similar to the mFRR one, significantly limiting the benefits of its continuation. 

Implementation deadline: July 2022. The platform is operational and several TSOs are connected. 

Implementation deadline: July 2022. The platform is operational and several TSOs are connected

The platform has been operational since June 2021 and all TSOs are using it.

Related Documents

Latest approved implementation framework for the RR.

Documentation on the approval process of this methodology.

Latest approved implementation framework for the mFRR platform.

Documentation on the approval process of this methodology.

Latest approved implementation framework for the aFRR platform.

Documentation on the approval process of this methodology.

Latest approved implementation framework for the IN platform.

Documentation on the approval process of this methodology.

Find out more on the implementation of the European balancing platforms on ENTSO-E's website.  

Activation purposes of balancing energy bids 

What is it about?

Transmission System Operators (TSOs) receive standard product balancing energy bids from service providers, which they forward to the European platforms for exchanging balancing energy.

These balancing energy bids shape the common merit order list (ranking of available bids) for each platform and can be activated by the respective platform to satisfy TSOs’ balancing energy demand. Each TSO can activate any of these bids for satisfying system constraints.

Legal basis: Article 29(3) of the EB Regulation

Responsibility: all TSOs

Current status: The methodology was approved by ACER in June 2020.

Implementation: Each TSO should implement this classification methodology, once they join the respective European platform.

Read more on the latest approved methodology for classifying the activation purposes of balancing energy bids.

Documentation on the approval process of this methodology.

Pricing of balancing energy and cross-zonal capacity

What is it about?

TSOs receive standard product balancing energy bids from service providers, which they forward to the European platforms for exchanging balancing energy. Each platform activates the most cost-efficient balancing energy bids to satisfy TSOs’ balancing energy demand. The balancing energy price is set according to the marginal pricing principle. These balancing energy prices represent also a reference for pricing the cross-zonal capacity used in the balancing energy’s exchange by each platform. 

Legal basis: Article 30(1) of the EB Regulation

Responsibility: all TSOs

Current status: The methodology was approved by ACER in January 2020.

Implementation: Each TSO should implement this methodology once they join the respective European platform for the exchange of balancing energy. The European platform for the exchange of balancing energy form replacement reserves applied a different pricing methodology (as it became operation before the ACER Decision 01/2020). However, the TSOs using this platform should implement this methodology by 1st July 2022.

Read more on the latest approved methodology for pricing balancing energy.

Documentation on the approval process of this methodology.

Cross-zonal capacity calculation methodology

What is it about?

The capacity calculation methodology describes how TSOs calculate the available cross-zonal capacity for the exchange of balancing energy or for operating the imbalance netting process within the balancing timeframe. The methodology complies with network security standards.

The process consists of the following steps:

  • TSOs define capacity calculation inputs – i.e. common grid models
  • The inputs are used by regional coordination centres to calculate the available amount of cross-zonal capacities either by using a flow-based or coordinated Net Transmission Capacity (NTC) approach, depending on the respective region.

Legal basis: Article 37(3) of the EB Regulation

Responsibility: all TSOs in each capacity calculation region

Current status: Proposals for this methodology need to be submitted from the TSOs of each capacity calculation region by December 2022.

Implementation: No implementation timeline available yet.

See Also:

History

 

The development of the EB Regulation started in 2011 when the Agency started developing the Framework Guidelines on Electricity Balancing. These Framework Guidelines were adopted on 18 September 2012.   

Among other elements, the Framework Guidelines included provisions for the forthcoming development of the Network Code on Electricity Balancing. The Framework Guidelines were essentially aiming for the integration of national electricity balancing markets through the cross-border exchanges of balancing services.

The core element of the Framework Guidelines were the models for cross-border exchanges of balancing energy that should first emerge in different geographical areas and gradually, i.e. within 6 years be integrated into one European platform where all TSOs would have access to different types of balancing energy while taking into account the transmission capacities available between different areas. To enable the creation of such a market, several requirements need to be implemented such as a common set of rights (in particular in terms of access to the balancing markets and in terms of remuneration) and obligations (in particular in terms of balancing responsibility) for all types of market participants (generation and demand). The Framework Guidelines also asked for more efficient procurement and use of balancing reserves.

The Framework Guidelines on Electricity Balancing also required the standardisation and harmonisation of some key balancing elements such as balancing products, balancing energy pricing and imbalance pricing, which are considered as prerequisites before the markets can be fully integrated. The roles and responsibilities of TSOs, Balancing Service Providers and Balance Responsible Parties also need to be harmonised to a large degree to achieve a level playing field for competition in different Member States.

Based on these Framework Guidelines, ENTSO-E was tasked to develop the Network Code on Electricity Balancing. Subsequently, the draft network code was submitted to the Agency for opinion based on which ENTSO-E revised the network code and resubmitted it to the Agency. Finally, the Agency adopted a recommendation to the European Commission to adopt the Network Code on Electricity Balancing subject to specific amendments proposed by the Agency. Following this recommendation, the European Commission further revised the network code, which was then finally adopted as a Commission guideline in November 2017 and entered into force in December 2017.

The detailed dates and documents of the above actions are presented below:

Action 1: 18 September 2012: The Agency adopts the Framework Guidelines on Electricity Balancing

Action 2: 23 December 2013: ENTSO-E submits the Network Code on Electricity Balancing to the Agency

Action 3: 21 March 2014: The Agency adopts the Opinion on the Network Code on Electricity Balancing

Action 4: 16 September 2014: ENTSO-E submits the revised Network Code on Electricity Balancing to the Agency     

Action 5: 20 July 2015: The Agency adopts the Recommendation on the Network Code on Electricity Balancing

A brief historic introduction
Documents
See Also

Electricity Balancing

Electricity Balancing

The EB Regulation

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Electricity transmission line

The Electricity Balancing Regulation establishes the common principles for procuring, activating and exchanging of the balancing services.

These binding requirements implement and ensure a proper functioning of the integrated electricity market in the balancing timeframe and regulate the activities of Transmission System Operators (TSOs), national regulatory authorities and ACER.

What are its core elements?

  • Rules for Balancing Service Providers and Balancing Responsible Parties: the terms and conditions related to balancing defined at national level should provide fair, transparent and non-discriminatory rules for all actors involved in the balancing markets, ensuring adequate and fair competition.

  • Exchange of balancing capacity and cross-zonal capacity allocation: these rules enable TSOs to jointly procure and use balancing capacity, forming broader cooperation, benefiting from economic reserve providing resources outside their area.

  • Common European balancing energy platforms: the integration of balancing energy markets is facilitated by European platforms that apply common merit order list to ensure cost-efficient activation of balancing energy bids across Europe.

  • Harmonisation of imbalance settlement: The imbalance settlement is a national mechanism, and its harmonisation at European level provides a consistent application of the rules across member states. This ensures that market participants have the same incentives to deliver energy, increasing the balancing markets’ overall efficiency.

  • Settlement rules between TSOs: The EB Regulation also ensures that all the exchanges between TSOs are settled with common rules, guaranteeing a fair and non-discriminatory approach.

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EB Regulation

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Documents
See Also


 

Stakeholders' involvement

​​​​​Development and amendments to CACM Regulation

The CAC​​​M Regulation has been developed in close cooperation with the Agency, ENTSO-E and stakeholders, in order to adopt effective, balanced and proportionate rules in a transparent and participative manner. In accordance with Article 18(3) of Regulation (EC) No 714/2009, the Commission will consult the Agency, ENTSO-E and other relevant stakeholders, before proposing any amendment to this regulation.

 

Development of terms and conditions or methodologies

 

Every proposal for the terms and conditions on methodologies, having a direct effect on stakeholders, should be submitted to public consultation before its submission for regulatory approval, in accordance with Article 12 of the CACM Regulation. The entities responsible for performing the consultation should duly consider the views of stakeholders resulting from the consultation, prior to its submission for regulatory approval. In all cases, a clear and robust justification for including or not the views resulting from the consultation should be developed and published in a timely manner before or simultaneously with the publication of the respective proposal.​
 

Implementation of CACM Regulation

 

Pursuant to Article 11 of the CACM Regulation, the Agency, in close cooperation with ENTSO-E, has established the Market European Stakeholder Committee (MESC), in order to organise stakeholder involvement regarding single day-ahead and intraday coupling and other aspects of the implementation of the CACM Regulation and holds regular meetings with stakeholders to identify problems and propose improvements notably related to the operation and development of the issues described in the CACM Regulation.

Details on the activities of MESC
 

Involvement of stakeholders in the implementation of CACM Regulation
Documents
See Also

Designation of NEMOs

Designation of NEMOs

Designation of Nominated Electricity Market Operators

Articles 4, 5 and 6 of CACM Regulation determine the designation of Nominated Electricity Market Operators (NEMOs). Each Member State needs ensure that at least one NEMOs is designated in each Member State to perform the single day-ahead and single intraday coupling. Each NEMO designated in a territory of one Member State has the right to provide its services in other Member States (i.e. by way of so called “passporting") Exceptionally Member States may refuse the trading services by a NEMO designated in another Member State only in specific, well-defined cases, as stated in Article 4(6) of the CACM Regulation. Moreover, the Member States have the right to revoke the designation of a NEMO, in case the NEMO fails to maintain compliance with the criteria set in Article 6 of the CACM Regulation.​

Documents
See Also

Implementation

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​​​​​​The CACM Regulation sets out specific obligations for NEMOs, TSOs, regulatory authorities and the Agency regarding the development and approval of different terms and conditions or methodologies, which are considered as detailed rules for the operation of Internal Electricity Market in the day-ahead and intraday timeframe. Article 9 of CACM Regulation describes the process of adoption of these terms and conditions or methodologies. In accordance with Article 9(6) of CACM Regulation these terms and conditions or methodologies are divided into European, regional and national. They are developed either by TSOs or NEMOs and in specific cases the cooperation of both is required. A proposal from NEMOs or TSOs should typically be consulted upon in accordance with Article 12 of CACM Regulation and submitted to the concerned regulatory authorities and to the Agency in accordance Article 9(9) of CACM Regulation. The proposal should contain a timescale for implementation and the expected impact on the objectives of the CACM Regulation (Article 3).

Regulation (EC) No 713/2009 has been repealed and replaced by the Regulation (EU) 2019/942 of 5 June 2019 and amends some procedures established by either Regulation (EC) 713/2009 or Regulation (EC) 714/2009.

The ‘old’ proc​edure for adoption of the terms and conditions or methodologies (before 4 July 2019) now applies for only regional and national decision making processes:

The concerned regulatory authorities should take decisions concerning the proposed terms and conditions or methodologies from NEMOs and/or TSOs within six months after the receipt of the proposal. Where the regulatory authorities are not able to approve the proposal, they can request an amendment, which gives the concerned NEMOs or TSOs two months for amending the proposal. Subsequently the regulatory authorities need to approve the amended proposal within two months after receiving the amended proposal. If the regulatory authorities are not able to reach an agreement or upon their joint request, the Agency becomes competent to adopt a decision on the proposal within six months from the referral.

The ‘new’ procedure (after 4 July 2019) now applies for only those terms and condition or methodologies, which are subject to approval by all regulatory authorities, in accordance to Article 9(6) of the CACM Regulation:

The Agency should take decisions concerning the proposed terms and conditions or methodologies from NEMOs and/or TSOs within six months after the receipt of the proposal.

To enable a regular review of the terms and conditions or methodologies, the TSOs or NEMOs responsible for developing these terms and conditions or methodologies may propose amendments to them and submit them for approval to regulatory authorities  or the Agency, respectively.

For the designatio​n of NEMOs and reviewing the existing bidding zone configuration, different rules and procedures apply and are described in more detail in pages​ Designation of NEMOs and Bidding zone​ review.​​​
 

Implementation of guideline on capacity allocation and congestion management
Documents

​The core elements of CACM Regulation are:

  • Opt​imal definition of b​idding zones​. Bidding zones are geographic areas within which electricity exchanges are unrestricted, whereas exchanges between bidding zones require cross-zonal capacity - which is limited. Bidding zones should be defined to prevent structural congestions within a bidding zone. In case the existing bidding zone configuration is not efficient, TSOs need to review the structure and propose a more efficient one.

  • Calculat​ion of capacities between bidding zones​. Capacity calculation should be coordinated among TSOs to become as efficient as possible and transparent for market participants. As a result, TSOs can provide an optimal amount of cross-zonal capacity for allocation in the market.

  • Allocation of cross-zonal capacities​ with market coupling​. The most efficient way to allocate cross-zonal capacity is the use of the Union-wide market coupling, which collects all bids and offers from the bidding zones within the European Union and maximises the economic surplus. For this purpose, NEMOs organize the day-ahead coupling as an implicit auction and the intraday coupling as continuous trading supplemented by numerous implicit auctions. The CACM Regulation also addresses the related post-coupling pr​ocesses​.

  • Management of re​sidual con​gestions​. Physical congestions, which were not prevented by capacity calculation and allocation, need to be managed by coordinated TSOs' actions -i.e. by using countertrading or re-dispatching.​​​

The core elements
See Also

Redispatching and countertrading

​​​​​Coordination of redispatching and countertrading

What is it about?

The methodology describes how TSOs and regional coordination centres of capacity calculation regions manage network congestions at the day-ahead and intraday level. This is done with regionally coordinated application of costly remedial actions, in the so-called ROSC (Regional Operational Security Coordination) process.

This coordination process involves the remedial actions optimisation and coordination in a single day-ahead and multiple intraday operational security assessment rounds (CROSA).

The methodology is closely related with the Regional Operation Security Coordination (ROSC) methodology (Article 76 of the Guideline on Electricity Transmission System Operation).

Legal basis: Article 35 of the CACM Regulation

Responsibility: all Transmission System Operators (TSOs) in each capacity calculation region

Current status: The methodology was approved in all capacity calculation regions.

Implementation: The methodology is currently being implemented in most of the regions and expected to be fully implemented by the end of 2024.

Read more on the latest approved redispatching and countertrading methodologies of the respective capacity calculation region.

Documentation on the approval processes of the RDCT methodologies of each capacity calculation region.

 

Cost sharing for coordinated redispatching and countertrading

What is it about?

The methodology establishes the rules TSOs need to follow to determine the different categories of flows (loop, internal, phase shifting transformers, allocated flows) which created network congestions for each capacity calculation region and how the respective costs are shared among TSOs.

The process

  • Once resolved in the Regional Operation Security Coordination (ROSC) process by engaging the remedial actions, the polluting flows are mapped accordingly.

  • The costs of engaging the costly remedial actions are appointed to the specific TSOs which create the polluting flows.

Legal basis: Article 74 of the CACM Regulation

Responsibility: all TSOs in each capacity calculation region

Current status: The  methodology was approved in all capacity calculation regions except of Italy North.

Implementation: The methodology is currently being implemented in most of the regions along with the redispatching and countertrading methodology. The implementation in all regions is expected by the end of 2024.

Read more on the latest approved RDCT cost sharing methodologies of the respective capacity calculation region.

Documentation on the approval processes of the RDCT cost sharing methodologies of each capacity calculation region.

Development of methodologies related to redispatching and countertrading
Documents
See Also

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See Also:

Post-coupling processes

​Fallback procedures

 

Pursuant to Article 44 of the CACM Regulation, each TSO in coordination with all the other TSOs in the capacity calculation region, needs to develop a proposal for fallback procedures and submit it to the concerned regulatory authorities for approval and to the Agency for information.

Action 1: By June 2017, all TSOs from each CCR submitted to the concerned regulatory authorities and the Agency the proposals for fallback procedures. The delay in the submission was caused by the delay in the approval of the MCO plan.

Action 2: By December 2017, the regulatory authorities of the CCRs CHANNEL, HANSA, GRIT and IU approved the respective proposals for fallback procedures.

Action 3: By December 2017, the regulatory authorities of the CCRs BALTIC,  CORE, ITALY NORTH, NORDIC, SEE and SWE requested from their TSOs to amend the respective proposals for fallback procedures.

Action 4: By February 2018, the TSOs of the CCRs BALTIC, ITALY NORTH, NORDIC, SEE and SWE submitted to the concerned regulatory authorities and the Agency the respective amended proposals for fallback procedures.

Action 5: By April 2018, the regulatory authorities of the CCRs BALTIC, ITALY NORTH, NORDIC, SEE and SWE approved the respective amended proposals for fallback procedures.

Action 6: In March 2018, the regulatory authorities of the CORE CCR referred the amended proposal for fallback procedures to the Agency for a decision in accordance with the procedure set out in Article 9(12) of the CACM Regulation. The reason for the referral was that they were not able to reach an agreement on the amended proposal.

Action 7: By May 2018, the TSOs of CCR CHANNEL submitted to the concerned regulatory authorities and the Agency a proposal for amendment of the fallback procedures.

Action 8: In September 2018, the Agency adopted a decision on the amended proposal for the Core CCR fallback procedures.

Action 9: By December 2018, the regulatory authorities of CCR CHANNEL approved the proposal for amendments for fallback procedures.

Action 10: In October 2020, the TSOs of the Core, GRIT and SEE CCR submitted to their concerned regulatory authorities the amended proposals for the fallback procedures.  

Action 11: In December 2020, the regulatory authorities of GRIT CCR approved the amended proposal for fallback procedures submitted by GRIT TSOs.

Action 12: In December 2020, the regulatory authorities of Core CCR referred the amended proposal for fallback procedures to ACER in accordance with Article 9(11) of the CACM Regulation.​​​

You can find documents related to the above actions here.

You can find the exact dates of the above actions in the implementation table here.

You can find the approved fallback procedures here. ​

 

Calculation of scheduled exchanges

 

Pursuant to Articles 43 and 56 of the CACM Regulation, the TSOs which intend to calculate scheduled exchanges resulting from single day ahead coupling and single intraday coupling need to develop a proposal for a methodology for calculation of scheduled exchanges and submit it to all regulatory authorities for approval and to the Agency for information.  

Action 1: By December 2016, the TSOs, which intended to calculate scheduled exchanges, submitted to the concerned regulatory authorities and the Agency the proposal for the methodology for calculating scheduled exchanges.  

Action 2: In September 2017, all regulatory authorities sent a letter to all TSOs requesting that all TSOs should submit to all regulatory authorities the proposal for the methodology for calculation of scheduled exchanges by December 2017.

Action 3: By March 2018, all TSOs submitted to all regulatory authorities and the Agency the proposal for the methodology for calculation of scheduled exchanges.

Action 4: In September 2018, all regulatory authorities requested from all TSOs to amend the proposal for calculation of scheduled exchanges.

Action 5: By December 2018, all TSOs submitted to all regulatory authorities and to the Agency the amended proposal for the methodology for calculation of scheduled exchanges for the day-ahead and intraday timeframes.

 

Action 6: In February 2019, the chair of the Energy Regulators’ Forum, on behalf of all regulatory authorities, requested the Agency to grant a one-month extension for the regulatory authorities’ decision making regarding the amended proposal for the methodology for calculation of intraday scheduled exchanges, pursuant to Article 8(1) of Regulation (EC) No 713/2009, and in March 2019 the Agency granted the extension.

Action 7: By June 2019, all regulatory authorities approved the amended proposal for the methodology for calculation of day-ahead and intraday scheduled exchanges.

You can find documents related to the above actions here.

You can find the exact dates of the above actions in the implementation table here.

You can find the approved scheduled exchanges methodology here.

 

Congestion income distribution

 

Pursuant to Article 73 of the CACM Regulation, all TSOs need to develop a proposal for a congestion income distribution methodology and submit it to all regulatory authorities for approval and to the Agency for information.

Action 1: By August 2016, all TSOs submitted to all regulatory authorities and the Agency the proposal for congestion income distribution methodology.

Action 2: By February 2017, all regulatory authorities requested from all TSOs to amend the proposal for congestion income distribution methodology.

Action 3: By April 2017, all TSOs submitted to all regulatory authorities and the Agency the amended proposal for congestion income distribution methodology.

Action 4: In June 2017, all regulatory authorities referred the amended proposal for congestion income distribution methodology to the Agency for a decision following the procedure set out in Article 9(12) of the CACM Regulation. The reason for the referral was that they were not able to reach an agreement on the proposal.

Action 5: In December 2017, the Agency adopted a decision on the proposal for the congestion income distribution.

The congestion income distribution methodology should be implemented in each respective capacity calculation region at the date of implementation of the capacity calculation methodology in accordance with Articles 20 and 21 of the CACM Regulation.

You can find documents related to the above actions here.

You can find the exact dates of the above actions in the implementation table here.

You can find the approved proposal for the congestion income distribution methodology here.​

Development of methodologies related to post-coupling processes
Documents
See Also

​The Agency maintains this site to enhance public access to information about the approvals of those terms and conditions or methodologies developed under the network codes/guidelines which require coordination of at least two regulatory authorities. The information on this site is for informational purpose only and does not replace the officially adopted text of the terms and conditions or methodologies in the legally binding documents. The information on this site is based on input from regulatory authorities, transmissions system operators and nominated electricity market operators. The Agency’s goal is to keep the information on this site accurate and timely, subject to the provision of the information to the Agency and subject to confidentiality restrictions. If errors are brought to the Agency’s attention, it will contact the relevant information provider and try to correct the errors. However, the Agency accepts no responsibility or liability whatsoever with regard to the information on this site and, where this information is linked to external sites, to the information on those external sites.​​​​

Disclaimer

Market Coupling Development

Designation of Nominated Electricity Market Operators

What is it about?

Each Member State needs to ensure that at least one NEMO is designated to perform the single day-ahead and single intraday coupling. Each NEMO designated in the territory of one Member State has the right to provide its services in other Member States ('passporting').

Member States can refuse the trading services by a NEMO designated in another Member State only in exceptional and specific cases (Article 4(6)). The Member States have also the right to revoke the designation of a NEMO, in case it fails to comply with the criteria set in Article 6 of the CACM Regulation.

Legal basis: Article 4, 5 and 6 of the CACM Regulation

Current status: Access the list of currently designated NEMOs and where they provide services.

 

Market Coupling Operation plan

What is it about?

The Market Coupling Operation (MCO) plan sets out how all NEMOs jointly establish and perform the market coupling operator functions which include:

  • developing and maintaining the algorithms, systems and procedures for single day-ahead and single intraday coupling;
  • processing input data on cross-zonal capacity and allocation constraints provided by coordinated capacity calculators;
  • operating the price coupling and continuous trading algorithms; and
  • validating and sending single day-ahead and intraday coupling results to NEMOs.

The plan also covers the governance principles for performing the market coupling operator functions.

Legal basis: Article 7(3) of the CACM Regulation

Responsibility: all NEMOs

Current status: The MCO Plan was approved by all regulatory authorities in July 2017.  

Implementation: The MCO Plan is implemented once all bidding zone borders in the internal energy market are participating in the single day-ahead coupling and single intraday coupling.

Read more on the latest approved MCO plan.

Documentation on the approval process of this methodology.

 

Single day-ahead and intraday coupling algorithms

What is it about?

The methodology establishes the requirements for the algorithms used in the day-ahead (price coupling algorithm) and intraday coupling (continuous trading matching algorithm and intraday auction algorithm), along with the criteria to fulfil them. The algorithms need to be scalable, repeatable and aim for maximum economic surplus. The methodology also ensures that any developments enable:

  • efficient and timely implementation of the single European electricity market; and
  • a close monitoring of the development and operations.

Legal basis: Article 37 of the CACM Regulation

Responsibility: all NEMOs

Current status: The algorithm methodology was approved by ACER in July 2018 and amended in January 2020. Another amendment to include co-optimisation is currently pending ACER’s approval. ACER initially planned to decide on the matter by 24 May 2024, but will now decide by early autumn 2024 to incorporate stakeholders' views on the findings of the related consultancy study.

Update as of 24 September: with its Decision 11-2024, ACER adopted the amended methodology.

Implementation: The methodology has been largely implemented. Implementation of certain functionalities is still pending.

Read more on the latest approved algorithm methodology.

Documentation on the approval process of this methodology.

 

Single day-ahead and intraday coupling products

What is it about?

The terms and conditions list all products that can be used in the day-ahead and intraday coupling and splits them into two categories: mandatory and optional.

Legal basis: Article 40 (day-ahead) and Article 53 (intraday) of the CACM Regulation

Responsibility: all NEMOs

Current status: The terms and conditions were approved by all regulatory authorities in 2018 and their amendment were approved by ACER in January 2020.

Implementation: The terms and conditions are implemented.

Read more on the latest approved products terms and conditions.

Documentation on the approval process of this methodology.

 

Minimum and maximum prices

What is it about?

The terms and conditions set out the harmonised maximum and minimum clearing prices to be applied in the market coupling. They are  subject to the application of an automatic adjustment mechanism. This mechanism ensures that an increment to the original maximum price is added if the clearing prices in the day-ahead or intraday coupling nearly reach its maximum limit.

Legal basis: Article 41 (day-ahead) and Article 54 (intraday) of the CACM Regulation

Responsibility: all NEMOs

Current status: The terms and conditions on minimum and maximum prices were approved by ACER in November 2017.

Implementation: The terms and conditions are implemented.

Read more on the latest approved terms and conditions on minimum and maximum prices.

Documentation on the approval process of this methodology.

 

Back-up methodology

What is it about?

All NEMOs are responsible for establishing, together with the relevant TSOs, the backup procedures for national or regional market operation in case no results are available from the market coupling operation functions.

The methodology ensures a back-up in operating the MCO functions, in case the responsible NEMO is unable to do so. This methodology takes into account the fallback methodology under the CACM Regulation.

Legal basis: Article 36 of the CACM Regulation

Responsibility: all NEMOs (in cooperation with all TSOs)

Current status: The back-up methodology was approved by all regulatory authorities in March 2019. 

Implementation: The methodology is implemented.

Read more on the latest approved back-up methodology.

Documentation on the approval process of this methodology.

 

Intraday cross-zonal gate opening and closure time

What is it about?

The terms and conditions determine the intraday cross-zonal gate opening (point in time when cross-zonal capacity between bidding zones is released) and closure time (where cross-zonal capacity allocation is no longer permitted).

The intraday cross-zonal gate opening time has been set to 15:00 market time day-ahead.

The intraday cross-zonal gate closure time has been set to 60 minutes before the start of the relevant intraday market time unit on a bidding zone border.

Legal basis: Article 59 of the CACM Regulation

Responsibility: all TSOs

Current status: The terms and conditions were approved by ACER in April 2018.

Implementation: The terms and conditions are implemented in all capacity calculation regions.

On 2 July 2025, TSOs submitted to ACER a proposal to move the gate closure time to 30 minutes before delivery. ACER plans to decide on the matter by 2 January 2026.

Read more on the latest approved terms and conditions for the intraday cross-zonal gate opening and intraday cross-zonal gate closure times.

Documentation on the approval process of this methodology.

 

Intraday capacity pricing

What is it about?

The pricing mechanism for cross-zonal capacity in the intraday timeframe should be based on intraday auctions. These auctions are part of the single intraday coupling and complement continuous trading, where the available cross-zonal capacity is allocated at a zero price on a first come first serve basis.

The methodology ensures cross-zonal capacity is not allocated to the intraday auctions and the continuous trading at the same time.

Legal basis: Article 55 of the CACM Regulation

Responsibility: all TSOs

Current status: The methodology was approved by ACER in January 2019.

Implementation: The methodology is implemented through the amendments of the algorithm methodology, which introduces intraday auctions as the tool for pricing intraday capacity. The algorithm methodology sets out the implementation of the intraday auctions to the beginning of 2023.

Read more on the latest approved methodology for pricing intraday cross-zonal capacity.

Documentation on the approval process of this methodology.

 

Day-ahead firmness deadline

What is it about?

The day-ahead firmness deadline methodology defines the deadline after which cross-zonal capacity for the day-ahead allocation becomes firm. The day-ahead firmness deadline is set to 60 minutes before the day-ahead market gate closure time.

Legal basis: Article 69 of the CACM Regulation

Responsibility: all TSOs

Current status: The methodology was approved by all regulatory authorities in July 2017. 

Implementation: The methodology is implemented. 

Read more on the latest approved day-ahead firmness deadline methodology.

Documentation on the approval process of this methodology.

 

Complementary regional auctions

What is it about?

These provisions allow for the implementation of complementary regional intraday auctions  within or between bidding zones in addition to the single intraday coupling solution if they do not have an adverse impact on the single intraday coupling. TSOs and NEMOs need to establish the methodology to be approved by the relevant regulatory authorities. Their application shall be reviewed at least every two years.

Legal basis: Article 63 of the CACM Regulation

Responsibility: relevant NEMOs and TSOs

Current status: The complementary regional intraday auctions were approved for the bidding zone border between Spain and Portugal and Italy North and Italy-Greece biding zone borders.  

Implementation: The complementary regional intraday auctions are partially implemented (see above).

Read more on the latest approved methodologies for complementary regional intraday auctions.

Documentation on the approval processes of the methodologies for complementary regional intraday auctions.

 

Fallback procedures

What is it about?

The fallback procedures ensure efficient, transparent and non-discriminatory capacity allocation in case the single day-ahead coupling process is unable to produce results. Different regions have different fallback solutions in place.

Legal basis: Article 44 of the CACM Regulation

Responsibility: all TSOs in each capacity calculation region

Current status: The fallback procedures were approved in all regions. Some regions also approved amendments.

Implementation: The fallback procedures are implemented in all regions.

Read more on the latest approved fallback methodologies of the respective capacity calculation region.

Documentation on the approval processes of the fallback methodologies.

 

Calculation of scheduled exchanges

What is it about?

Scheduled exchanges are electricity transfers scheduled between geographic areas for each market time unit and for a given direction. The scheduled exchanges between bidding zones, scheduling areas and NEMO trading hubs are calculated by using the net positions and clearing prices of bidding zones (as outputs of the day-ahead and intraday algorithms)

Legal basis: Article 43 (day-ahead) and Article 56 (intraday) of the CACM Regulation

Responsibility: all TSOs

Current status: The methodology for the day-ahead timeframe was approved by all regulatory authorities in March 2019. The methodology for the intraday timeframe was approved by all regulatory authorities in June 2019.

Implementation: The scheduled exchange methodologies are implemented.

Read more on the latest approved scheduled exchange methodologies.

Documentation on the approval process of these methodologies.

 

Congestion income distribution

What is it about?

The congestion income distribution methodology establishes the rules for collecting and distributing the congestion income on the bidding zone borders within capacity calculation regions from the day-ahead market and for distributing it among the TSOs having interconnectors on that border.

Legal basis: Article 73 of the CACM Regulation

Responsibility: all TSOs

Current status: The latest amendments to the methodology were approved by ACER in 2022.

Implementation: The  implementation is linked to the implementation of the capacity calculation methodology within their respective capacity calculation region, so different regions have different implementation timelines.

Read more on the latest approved congestion income distribution methodology.

Documentation on the approval process of this methodology.

Development of methodologies related to market coupling
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Capacity Calculation

​​​​​​Definition of capacity calculation regions

What is it about?

This methodology groups all the bidding zone borders of the EU's internal energy market into the different capacity calculation regions (CCRs). This is relevant for the functioning of the internal energy market, as it simplifies processes by forming such regional sub-groups. The approach needs to consider for which bidding zone borders the need of coordination is the highest (e.g. taking into account the interdependencies) and where it is most efficient to apply cross regional coordination. Different regional methodologies (such as capacity calculation, redispatching and countertrading) will be applied on the various capacity calculation regions.

Legal basis: Article 15(1) of the CACM Regulation

Responsibility: all Transmission System Operators (TSOs)

Current status: The determination of capacity calculation regions was approved by ACER in March 2024

Implementation: The determination of capacity calculation regions is implemented. A future assessment is foreseen to assess the efficiency of the current CCR determination based on information from newly implemented regional methodologies.

Read more on the latest approved determination of capacity calculation regions.

Documentation on the approval process of this methodology.

Check out ENTSO-E’s interactive map of capacity calculation regions

 

Generation and load data provision

What is it about?

The generation and load data provision  methodology sets out requirements related to the delivery of the generation and load data needed to establish the common grid model. It specifies what units and which information need to be submitted to their respective TSOs, as well as their deadlines. 

Legal basis: Article 16 of the CACM Regulation

Responsibility: all TSOs

 Current status: The generation and load data provision methodology was approved by all regulatory authorities in July 2017.

Implementation: The methodology is implemented.

Read more on the latest approved generation and load data provision methodology.

Documentation on the approval process of this methodology.

 

Common grid model

What is it about?

The common grid model (created by merging all individual grid models of TSOs) provides the best forecast of perspective network states in the relevant market time units used for the day-ahead and intraday capacity calculation.

The methodology defines the rules and procedures for developing and merging the models, including the relevant parameters of network elements, generation and load patterns, net positions of modelled areas and network topology.

Legal basis: Article 17 of the CACM Regulation

Responsibility: all TSOs

Current status: The methodology was approved by all regulatory authorities in May 2017.

Implementation: The implementation deadline foresees the common grid model to become perational and available for the day-ahead and intraday time frames by June 2018. However, implementation is still ongoing.

Read more on the latest approved common grid model methodology for the day-ahead and intraday time frames.

Documentation on the approval process of this methodology.

 

Capacity calculation methodology

What is it about?

The day-ahead and intraday capacity calculation methodology describes the rules of each capacity calculation region on how to calculate the amount of capacity  available for trading between bidding zones at day-ahead and intraday market time frames. The methodology also complies with the network security standards.

The process

  • TSOs define capacity calculation inputs, such as hourly common grid models.

  • The inputs  are used by regional coordination centres to calculate the available amount of cross-zonal capacities either by using a flow-based or coordinated Net Transmission Capacity (NTC)  approach, depending on the respective region.

  • The final cross-zonal capacities are then made available to the market coupling were they are allocated, enabling trading among bidding zones.

Legal basis: Article 20 of the CACM Regulation

Responsibility: all TSOs in each capacity calculation region

Current status: The methodology was approved in all regions. Some regions also approved amendments, or they are currently under approval.

Implementation: Different regions have different implementation timelines. Some regions have already implemented the methodology, whereas some other are expected to do so by the end of 2022.

Read more on the latest approved capacity calculation methodologies of the respective capacity calculation region.

Documentation on the approval processes of the capacity calculation methodologies of each capacity calculation region.

Development of methodologies related to day-ahead and intraday capacity calculation
Documents
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