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Press release (3)


CEE TSOs continue to strive for successful implementation of Flow-based allocation in CEE region.

CEE TSOs recognize that the target model for the European electricity market is full price coupling based on Flow-Based Capacity Calculation and Allocation scheme (FBA). The well-thought decision taken by CEE TSOs to develop Flow based calculation methodology has been confirmed by European Regulators associated in ACER who have declared in draft Framework Guidelines on Capacity Allocation and Congestion Management that the Flow Based method for capacity calculation is “preferred for short term capacity calculation in cases where transmission networks are highly meshed and interdependencies between the interconnections are high” such as the CEE region.

Following CEE TSO HLM decision in the end of September 2011, the NRAs shall take the decision on introduction of day-ahead explicit FBA auctions in the CEE region in 2012. The decision shall be taken after careful evaluation of the different FBA options, considering both social welfare and security aspects.

Intensive research and development activities have led to improvements to FBA methodology. These developments were guided by the established acceptance criteria for the new FBA methodology, stating that the new method is acceptable when, network security and social welfare are higher or at least equal to ATC-based values. The results of latest Dry Run tests are essential for stakeholders’ evaluation and final approval.

CEE TSOs are convinced that the implementation of explicit FBA auction in the CEE region would be a major milestone in the capacity calculation and allocation process in Europe. Gathering real operational experience with the methodology might lead to strengthening inter-regional cooperation with CWE and other European regions and assuring efficient convergence towards unified European flow based capacity calculation process

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