In July 2018 the Nordic Regulators approved the Flowbased Capacity Calculation Methodology (“flowbased”) for the Nordic Capacity Calculation Region (“CCR Nordic”) in accordance with Article 20(2) of Commission Regulation (EU) 2015/1222 of 24 July 2015 establishing a Guideline on Capacity Allocation and Congestion Management.
An important part of the legislation and of the flowbased methodology is that “the TSOs concerned shall test the new approach alongside the existing approach and involve market participants for at least six months”. To Nordic Regulators’ understanding, testing the flowbased alongside the existing approach implies to have market coupling results each day with flowbased capacity input alongside the market coupling results with the current capacity input. This is referred to in the CCR Nordic methodology as “parallel runs”, and have been agreed to be performed for at least one year before flowbased can go live.
The NEMOs, which own the market coupling algorithm, have stated there are obstacles to perform the parallel runs on the same day as the market coupling, and therefore they want to do the parallel runs with a delay of 14 days. The Nordic Regulators assume that this is not in line with what everyone had in mind about parallel runs. Thus, the Nordic Regulators would welcome input from the stakeholders, and we hope you will take your time to answer the following and help us.
Question 1: How would it affect your assessment and understanding of the flowbased to have a 14-days delay on parallel runs compared to having the parallel run on the same day as the market coupling?
Question 2: Do you expect to be looking at the parallel run flowbased results every day, during the parallel runs? If not, with what frequency do you expect to assess the flowbased results?
Question 3: What kind of other problems, if any, would you foresee in running the parallel run with a delay of 14 days?
The Nordic Regulators appreciate your feedback by email before the end of 28 April 2020.
On behalf of Nordic Regulators
Søren Lorenz Søndergaard
Danish Utility Regulator
Phone: +45 41715373