Methodology for assessment of the Nordic forward market

NordREG has developed a common methodology for the Nordic NRAs to perform their upcoming analyses of the cross-zonal hedging opportunities in line with Commission Regulation (EU) 2016/1719 of 26 September 2016 establishing a guideline on forward capacity allocation (FCA GL) article 30.

The regulators will use this methodology to assess whether there are sufficient hedging opportunities in the Nordic electricity market. If the hedging opportunities in two adjacent bidding zones are deemed insufficient, the regulators on each side of the bidding zone border must, in a coordinated manner, make decisions targeted at the TSO’s on each side to introduce long term transmission rights (LTTRs) or other measures to improve hedging opportunities.

The regulators will also launch consultations on their assessments and the hedging needs of market participants in accordance with FCA GL art. 30(3)(a) during winter 2020-2021 or early spring 2021.

The deadlines for national decisions on whether there are sufficient hedging opportunities, and coordinated decisions per bidding zone border on introducing LTTRs or not are in April 2021* .

*As Norway has not implemented the FCA GL in national legislation at this point, the deadline for Norwegian borders will depend on the implementation time.