Proposal for Nordic aFRR capacity market and cross-zonal capacity allocation methodology submitted for regulatory approval

On 12th April 2019 the Nordic TSOs (Svenska kraftnät, Statnett, Fingrid and Energinet) submitted the legal proposals regarding the Nordic aFRR capacity market to their National Regulatory Authority (NRA) for approval.

All TSOs’ of CCR Nordic proposal for a methodology for a market-based allocation process of cross-zonal capacity for the exchange of balancing capacity in accordance with Article 41(1) of the Commission Regulation (EU) 2017/2195 of 23 November 2017 establishing a guideline on electricity balancing

Energinet, Fingrid, Statnett and Svenska kraftnät proposal in accordance with Article 33(1) and Article 38(1) of the Commission Regulation (EU) 2017/2195 of 23 November 2017 establishing a guideline on electricity balancing

The legal proposals have by the Nordic TSOs been restructured and renamed after the stakeholder consultation, which took place in September-October 2018. The restructuring is by the TSOs considered to be in line with the approval process according to the article 5 in EB GL. The overall content of the two proposals have not been changed to an extent which would require a new external consultation process.

The Nordic TSOs also submitted a request for an exemption of transfer of bids according to article 34(1) in EBGL:

Energinet, Fingrid, Statnett and Svenska kraftnät proposal for exemption for not allowing balance service providers to transfer their obligations to provide aFFR capacity in accordance with Article 34(1) of the Commission Regulation (EU) 2017/2195 of 23 November 2017 establishing a guideline on electricity balancing

The exemption from allowing market participants to transfer their obligations was included in the stakeholder consultation and Nordic TSOs did not receive any stakeholder comments about this exemption.

Except from the restructuring of the documents they have also been revised based on stakeholders' feedback to the consultation and a description of stakeholders' responses and the TSOs' reaction to that is included in annexes to the explanatory documents. The TSOs have since the consultation put effort in simulation studies and analysis to motivate the content of the proposals and these are included in the explanatory document for the methodology proposal pursuant to article 41 in EBGL.

A prerequisite for startup of the Nordic aFRR capacity market is NRA approval of the legal documents submitted by the Nordic TSOs. The NRAs have six months to decide on approval of the proposals. With requests for amendments from NRAs, the process towards approval can take up to four additional months. In this case the go-live of the Nordic market can take place earliest during the first quarter of 2020.