|Forward capacity allocation|
|European Union Electricity Market Glossary|
'Forward capacity allocation' stands for the attribution of long-term cross-zonal capacity through an auction before the day-ahead timeframe (Article 2(1) of the Network Code on Forward Capacity Allocation).
The forward capacity allocation enables long term cross zonal trade and provides market participants with long term cross zonal hedging opportunities against congestion costs and day ahead congestion pricing, compatible with bidding-zone delimitation.
At end 2017 there were 30 borders in the EU with harmonised forward capacity allocation rules (ACER’s 6th Annual Report on Monitoring the Electricity and Natural Gas Markets, Main insights, p. 19).
Network Code on Forward Capacity Allocation, Article 2(1)
|Last Updated on Tuesday, 27 August 2019 16:18|