Forward Capacity Allocation Platform
European Union Electricity Market Glossary

 


 

 

One of the biggest projects arising from the Network Code on Forward Capacity Allocation (FCA) will be the establishment of the Single Allocation Platform (SAP), which will allocate Long Term Transmission Rights (LTR) on the Bidding-Zone borders where these products are to be offered based on National Regulatory Authorities' (NRA's) decisions.

 

The SAP will simultaneously determine for each forward capacity allocation, at least, the following results for each bidding zone border, direction of utilization and market time period:

a) the volume of allocated Long Term Transmission Rights expressed in MW;

b) the price of Long Term Transmission Rights; and

c) the execution status of bids.

 

The Forward Capacity Allocation will enable long term cross zonal trade and provide market participants with long term cross zonal hedging opportunities against congestion costs and day ahead congestion pricing, compatible with bidding zone delimitation.

 

The Single Allocation Platform will be responsible for performing the Forward Capacity Allocation, in particular, for:

 

a) the registration of market participants;

 

b) providing a single point of contact to market participants;

 

c) the operation of Auction procedures;

 

d) the financial settlement of allocated Long Term Transmission Rights with market participants, including management of collaterals;

 

e) cooperation with a potential clearing house function;

 

f) enabling the return of Long Term Transmission Rights;

 

g) the publication of market information, pursuant to Article 52;

 

h) providing and operating interfaces for data exchange with market participants;

 

i) the organization of a fallback procedure;

 

j) providing a communication platform, on which market participants can indicate to other market participants their interest to transfer or purchase Long Term Transmission Rights which have been initially allocated by allocation platforms and on which market participants can contact each other in order to perform the transfer of Long Term Transmission Rights.

 

The formal requirement for market participants before being entitled to participate in the auction(s) or perform secondary trading is to register with the Single Allocation Platform and to meet all eligibility requirements under the corresponding allocation rules.

 

 

 

Network Code on Forward Capacity Allocation 

 

Chapter 4

Single Allocation Platform

 

Article 48

Establishment

1. All TSOs shall ensure that the single allocation platform is operational and complies with the functional requirements specified in Article 49 within 12 months after the approval of the proposal for a common set of requirements and for the establishment of the single allocation platform. The competent regulatory authorities may extend this period upon request from the relevant TSOs due to delays relating to public procurement procedures by a period of no more than 6 months.

2. Forward capacity allocations on Direct Current interconnectors shall take place on the single allocation platform no later than 24 months after the approval as referred to in paragraph 1.

 

Article 49

Functional requirements

1. Within six months after the entry into force of this Regulation, all TSOs shall submit to all regulatory authorities a common proposal for a set of requirements and for the establishment of the single allocation platform. The proposal shall identify different options for the establishment and governance of the single allocation platform, including the development by TSOs or by third parties on their behalf. The proposal by TSOs shall cover the general tasks of the single allocation platform provided for in Article 50 and the requirements for cost recovery in accordance with Article 59.

2. The functional requirements for the single allocation platform shall at least include:

(a) the expected bidding zone borders to be covered;

(b) the technical availability and reliability of provided services;

(c) the operational processes;

(d) the products to be offered;

(e) the forward capacity allocation timeframes;

(f) the allocation methods and algorithms;

(g) the principles of financial settlement and risk management of allocated products;

(h) a harmonised contractual framework with market participants;

(i) the data interfaces.

 

Article 50

General tasks

The relevant TSOs shall use the single allocation platform, at least, for the following purposes:

(a) the registration of market participants;

(b) providing a single point of contact to market participants;

(c) the operation of auction procedures;

(d) the financial settlement of allocated long-term transmission rights with market participants, including management of collaterals;

(e) the cooperation with a clearing house, if required by the common rules for the implementation of FTRs - obligations pursuant to Article 34;

(f) the organization of a fallback procedure pursuant to Article 42 and 46;

(g) enabling the return of long-term transmission rights pursuant to Article 43;

(h) facilitating the transfer of long-term transmission rights pursuant to Article 44;

(i) the publication of market information pursuant to Article 47;

(j) providing and operating interfaces for data exchange with market participants.

 

 

 



Last Updated on Sunday, 12 March 2017 17:52
 

Search

Twitter
Copyright © 2009 - 2017 Michal Glowacki. All rights reserved.
The materials contained on this website are for general information purposes only and are subject to the disclaimer