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.
Transmission System Operators of the CEE Region
ČEPS:
ČEPS, as a holder of an electricity transmission licence issued by the Energy Regulatory Office in accordance with the Energy Act, is the sole Czech Transmission System Operator. The Company is responsible for the maintenance and upgrading of 39 substations comprising 68 transformers allowing electricity to be supplied from the transmission system to the distribution grid, as well as of 400kV lines with a total length of 2979 km and 220kV lines with a total length of 1371 km. ČEPS is a member of relevant European international organisations. The Company is responsible for maintaining the national balance of electricity supply and demand in real time (system services) and for organising cross-border power exchanges including transits. ČEPS has traditionally been involved in the creation of liberalised electricity markets both within the Czech Republic and Europe. Additional information is available on www.ceps.cz.
Press Release in pdf can be find here.