CCM project

The Nordic Capacity Calculation Methodology (CCM) project aims to develop methodologies for calculating electricity transmission capacities in the Nordic region. The goal is to ensure efficient and transparent capacity calculation and allocation, which is crucial for maintaining a stable and competitive electricity market in the region.

The implementation of the Nordic CCM is expected to enhance cross-border electricity trading, improve price alignment across regions, and support the integration of renewable energy sources. It also aims to increase the overall efficiency and reliability of the Nordic electricity market.

Initial work on the Nordic FB methodology started as a voluntary and joint effort of all Nordic TSOs in 2012. With the CACM entering into force in 2015, the Nordic FB project was altered into the Nordic CCM project – being a CACM (and FCA and EB) GL implementation project, addressing all the legal requirements.

Main deliverables of the Nordic CCM project are

An operational, NRA-approved, Nordic CCM for the DA market timeframe
An operational, NRA-approved, Nordic CCM for the ID market timeframe
An operational, NRA-approved, Nordic CCM for the LT market timeframes
An operational, NRA-approved, Nordic CCM for the BT market timeframe

Regulations

The project aligns with the requirements set out in the Forward Capacity Allocation Guideline (FCA GL) and the Capacity Allocation and Congestion Management Guideline (CACM GL). These regulations ensure that the methodologies developed are consistent with European standards and are approved by National Regulatory Authorities (NRAs).

Here's short overview of the regulations

Forward Capacity Allocation Guideline (FCA GL): FCA GL establishes rules for long-term markets, allowing market participants to secure capacity on cross-border lines well in advance. It includes methodologies for capacity calculation, reliability margins, and the creation of a common grid model.
Capacity Allocation and Congestion Management Guideline (CACM GL): The CACM regulation provides methods for calculating and allocating capacity in day-ahead and intraday markets, ensuring efficient cross-border electricity flows and the management of congestion in the European electricity market. It mandates the use of the flow-based capacity calculation method in regions where it is deemed more efficient than other methods. CACM aims to create a single, integrated electricity market in Europe by harmonizing the rules for capacity calculation and allocation.
Electricity Balancing Guideline (EB GL): EBGL establishes common principles for procuring, activating, and exchanging balancing services within the integrated electricity market. It regulates the activities of Transmission System Operators (TSOs), national regulatory authorities (NRAs), and the Agency for the Cooperation of Energy Regulators (ACER) in the balancing timeframe.
System Operation Guideline (SO GL): SO GL covers real-time system operation and is more overarching for different timeframes. SO GL sets harmonized rules for the operation of the electricity transmission system to ensure its security and reliability. It includes provisions for capacity calculation, which are aligned with the flow-based approach. The guideline ensures that the operational security limits and contingencies are considered in the capacity calculation process.

Regulations and guidelines work together to ensure efficient, reliable, and transparent cross-border electricity trading.

Links:

Forward Capacity Allocation | www.acer.europa.eu

Capacity allocation and congestion management | www.acer.europa.eu

Electricity Balancing | www.acer.europa.eu

System Operation Guideline (SO GL) – Europex

Methodology

The Capacity Calculation Methodology (CCM) outlines the methods for calculating the available transmission capacity for cross-border electricity flows. The flow-based approach is one of the methodologies specified under CACM. Flow-based considers the physical constraints of the network and optimizes the use of transmission capacity by taking into account the actual flow paths of electricity.

The CCM for the Long-Term (LT), Day-Ahead (DA), Intraday (ID), and Balancing (BT) timeframes are to be developed in line with the requirements from the Forward Capacity Allocation Guideline (FCA GL) , CACM Regulation, and Electricity Balancing Guideline and to be approved by the National Regulatory Authorities (NRAs). If NRAs are not able to approve the methodology proposed by the TSOs, they must refer the methodology to the Agency for the Cooperation of Energy Regulators (ACER). ACER will then amend, and decide on, the methodology.

More information about methodology and approvals can be found from:

Methodology - Nordic Regional Coordination Centre

Nordic CCR Day-ahead and intraday capacity calculation methodology

Nordic Long-term capacity calculation methodology

Nordic CCR Methodology for balancing timeframe

Supporting documents:

DA/ID CCM: CCM - Supporting doc - second amendment - final.pdf

Disclaimer – The reader should be aware that the supporting document for the second amendment of the Nordic CCRS’s proposal for DA/ID capacity calculation methodology was published in Q1 2020. Hence, some information regarding input parameters, timeline for EPR etc. is outdated. The document is still valid for its main purpose to provide explanation, and background on the legal text in the CCM.

BT CCM: 10062022_BT CCM - supporting document_public consultation.pdf

Disclaimer – The reader should be aware that the supporting document for the balancing timeframe was published before the methodology for the balancing timeframe was approved. Since 16.10.2023 Nordic NRAs have approved the balancing timeframe methodology.

LT CCM: The Nordic TSOs initially proposed a CNTC approach for the long-term timeframes, and submitted a supporting document to explain its details. However, ACER intervened and mandated a FB approach instead. As a result, no explanatory document exists for the FB approach in the long-term timeframes. To prevent confusion, the previously prepared CNTC explanatory document has also been withheld, as it is no longer relevant.

Project Stakeholders

The project involves close cooperation between Transmission System Operators (TSOs), National Regulatory Authorities (NRAs), and other stakeholders. Regular stakeholder forums and consultations ensure that the methodologies are transparent and understandable for market participants.

External stakeholders include for example power generators, consumers and utilities, distribution system operators (DSOs), energy retailers and electricity traders. Also, European Network of Transmission System Operators for Electricity (ENTSO-E) and other capacity calculation regions, e.g. the Core region, are interested parties.

Upcoming stakeholder events are announced on the Nordic RCC website:

Upcoming Stakeholder Events - Nordic Regional Coordination Centre

Material of the previous stakeholder events can be also found from the Nordic RCC website:

Stakeholder meeting material from EPR events - Nordic Regional Coordination Centre

Stakeholder meeting material from post go-live events - Nordic Regional Coordination Centre

Publication

The publication of capacity calculation results is an essential part of ensuring transparency and reliability in the electricity markets.

After the Flow-based go-live, parameters used in operations are published in the JAO publication tool.

The European Network of Transmission System Operators for Electricity (ENTSO-E) provides a transparency platform that publishes capacity calculation results for various timeframes.

The Nordic Unavailability Collection System (NUCS) is a service designed to collect and publish data on unavailable production, transmission, and consumption capacity in the Nordic power system. In flow-based, the Long-term implementation project integrates data sending to NUCS.

Links:

JAO publication tool

JAO publication tool handbook

Transparency Platform

Transparency Platform (new, still under development)

NUCS