Electricity capacity calculation regions indecision could delay implementation of CACM network code

04 October 2016 05:49 Source:ICIS

A delay in deciding upon coordinated electricity capacity calculation regions (CCRs) is likely to lead to a knock-on delay of at least six months in implementing the capacity allocation and congestion management (CACM) network code, according to a body representing the interests of stakeholders across Europe’s electricity sector.

National regulators from across the bloc failed to agree on the common proposal for CCRs back in May, which means that EU regulatory body ACER will have to take the final decision.

This decision is to be made by 17 November, a spokesman for ACER said, but this could lead to a significant delay in the implementation of the CACM network code, which came into force in June 2015, according to EURELECTRIC.

A CCR is a geographic area in which TSOs apply a coordinated capacity calculation. They are a requirement of CACM, which aims to ensure the coordination of capacity calculation and allocation in the day-ahead and intra-day markets.

According to a spokesman for EURELECTRIC “the late approval is likely to delay the implementation of CACM for more than six months.”

However, according to European Federation of Energy Traders (EFET) electricity committee chairman Peter Styles, there was only likely to be a “slight knock-on effect” from the delay.

Decisions, decisions

ACER has a number of decisions to make regarding the CCRs, most notably regarding the potential split between the German and Austrian bidding zone. ACER is known to be in favour of the split as a way of dealing with loop flows of electricity that cause Germany’s neighbours headaches when it comes to supply security ( see EDEM 1 September 2016 ).

These loop flows occur because of a lack of transmission capacity between the north of Germany, where most of its wind power capacity is, and the south where its demand centres are.

Austria is arguing against such a split, while the German energy ministry has recently proposed a limited split during certain hours ( see EDEM 21 September ).

Whether or not the centraleastern Europe (CEE) region should include bidding zone borders between Croatia and Slovenia, Croatia and Hungary, and Romania and Hungary also remained an issue, as did the suggestion that the entire CEE zone merge with the centralwestern Europe zone.

In addition, both EURELECTRIC and EFET have said they would like to see non-EU members included in the calculation from the outset to ensure more effective regional cooperation.

Both organisations have also argued for the Serbian bidding zone to be part of the CEE region and for Switzerland to be included as part of the calculations. matthew.jones@icis.com

By Matthew Jones