Methodology Proposal

The Nordic TSOs have submitted the proposal for a new capacity calculation methodology for the Nordic Region to the national regulatory authorities in the Nordic region.

As required by the CACM Regulation, the Nordic TSOs are proposing a common coordinated capacity calculation methodology for the day ahead and intraday timeframe within the Nordic region. The proposal has been submitted to the national regulatory authorities in each of the Nordic countries by September 2017. In March 2018, the national regulatory authorities asked for an amendment of the proposal. The Nordic TSOs have submitted their amended capacity calculation methodology for the Nordic Region to the national regulatory authorities in May 2018.

Before submitting the proposal to the National Regulatory Authorities in September 2017, the proposal has been subject to a public consultation. The objective of the public consultation is to collect the stakeholders’ views on the proposal. The public consultation was launched on July 3 2017 and closed on August 18 2017.

The materials for the Public Consultation is found here.

According to CACM Regulation, the capacity calculation approach for the day ahead and intraday market timeframe shall be a flow-based approach unless the TSOs are able to demonstrate that the application of the capacity calculation methodology using the flow based approach would not yet be more efficient compared to the coordinated net transmission capacity approach and assuming the same level of operational security in the concerned region.

The Nordic TSO proposal is based on quantitative and qualitative assessments, which has provided no evidence to support a hypothesis of the coordinated net transmission capacity approach being as efficient as the flow based approach. The assessment has been based on a comparison between Flow Based and the current net transmission capacity approach, where the current approach serves as a proxy for a coordinated net transmission capacity approach:

For the Day Ahead timeframe: The Nordic TSOs propose to implement a Flow Based capacity calculation approach for the Day Ahead Market timeframe

For the Intraday timeframe: As the long-term solution, the Nordic TSOs proposes to implement a Flow Based approach for the intraday timeframe as soon as the intraday market platform is technically able to utilize flow-based capacities.

As an interim solution, the Nordic TSOs propose to implement a coordinated net transmission capacity approach for the intraday market timeframe.

The submitted proposal can be found here: Legal proposal and Supporting documents.

Additional Material

Meeting materials from previous meetings can be found here.

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