Network Code on Forward Capacity Allocation (FCA)




Commission Regulation (EU) 2016/1719 of 26 September 2016 establishing a guideline on forward capacity allocation (FCA) establishes common rules for Forward Capacity Allocation including the establishment of common methodology for determining the volumes of capacity simultaneously available between bidding zones.


The FCA was published in the EU Official Journal on 27 September 2016 and the date of its entry into force is 17 October 2016.


FCA lays down detailed rules on:


- cross-zonal capacity allocation in the forward markets ((i.e. timeframes longer than day-ahead),


- the establishment of a common methodology to determine long-term cross-zonal capacity (either a coordinated net transmission capacity approach or a flow-based approach),


- the establishment of a single allocation platform at European level offering long term transmission rights, and


- the possibility to return long-term transmission rights for subsequent forward capacity allocation or transfer long-term transmission rights between market participants.


FCA applies to all transmission systems and interconnections in the European Union, except the transmission systems on islands which are not connected with other transmission systems via interconnectors.


The entities affected by the requirements set forth by the FCA will be Transmission System Operators (TSOs), National Regulatory Authorities, the Agency for the Cooperation of Energy Regulators (ACER), Allocation Platforms, platforms for secondary trading and, last but not least, market participants.


The FCA’s purposes are:


(a) promoting effective long-term cross-zonal trade with long-term cross-zonal hedging opportunities for market participants;


(b) optimising the calculation and allocation of long-term cross-zonal capacity;


(c) providing non-discriminatory access to long-term cross-zonal capacity;


(d) ensuring fair and non-discriminatory treatment of TSOs, the Agency, regulatory authorities and market participants;


(e) respecting the need for a fair and orderly forward capacity allocation and orderly price formation;


(f) ensuring and enhancing the transparency and reliability of information on forward capacity allocation;


(g) contributing to the efficient long-term operation and development of the electricity transmission system and electricity sector in the Union.





IMG 0744






Commission Regulation (EU) 2016/1719 of 26 September 2016 establishing a guideline on forward capacity allocation (FCA)


Draft Commission Regulation establishing a guideline on forward capacity allocation, Version 30.10.2015


ACER Recommendation No 02/2014 of 22 May 2014 on the Network Code on Forward Capacity Allocation











ENTSO-E website for forward capacity allocation


Joint Allocation Office (JAO)


Capacity allocation











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Last Updated on Thursday, 19 October 2017 23:26


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