Market Codes
Market related codes outline the main features of a pan-European electricity market to promote effective competition, minimize risks for all parties and give incentives for market players to act in a way that supports an efficient operation of the system. They provide rules for calculating cross-border capacity and operating the markets in different timeframes.
Three (3) Network Codes from the market area focus on the Capacity Allocation & Congestion Management (CACM), Forward Capacity Allocation (FCA) and Electricity Balancing (EB).
CACM sets out the methods for calculating how much space can market participants use on cross border lines without endangering system security. It also harmonises how cross border markets operate in Europe to increase competitiveness but renewables’ integration. CACM is the cornerstone of a European single market for electricity.
The overarching objective is to deliver an integrated EU internal electricity market.
Indispensable for this purpose are also the following processes supported by the CACM:
(a) full coordination and optimisation of capacity calculations performed by TSOs within regions,
(b) definition of appropriate bidding zones, including regular monitoring and reviewing of the efficiency of bidding zone configuration.
Indispensable for this purpose are also the following processes supported by the CACM:
(a) full coordination and optimisation of capacity calculations performed by TSOs within regions,
(b) definition of appropriate bidding zones, including regular monitoring and reviewing of the efficiency of bidding zone configuration.
CACM entered into force as from 16 August 2015.
Documents prepared during the implementation of CACM:
Baltic CCR national NRAs have approved Baltic CCR capacity calculation methodology (CCM) prepared by Baltic CCR TSOs in accordance of EC REGULATION (EU) 1222/2015 (CACM Regulation) on 16th of November 2018. Subject to provisions for the implementation of the methodology as detailed within 15.1 section are fulfilled, this methodology should become effective for the cross-border capacities calculation in the Baltic CCR in 2019.
ACER decision No 04/2018 Of 24 April 2018 On All Transmission System Operators’ Proposal for Intraday Cross-Zonal Gate Opening and Intraday Cross-Zonal Gate Closure Times
Coordinated redispatching and countertrading methodology
FCA deals with rules for long term markets, the forward markets. These have an important role in allowing market participants to secure capacity on cross border lines a long time in advance and therefore have a sort of trade insurance.
The purposes of the FCA Regulation are:
(a) promoting effective long-term cross-zonal trade with long-term cross-zonal hedging opportunities for market participants;
(b) optimising the calculation and allocation of long-term cross-zonal capacity;
(c) providing non-discriminatory access to long-term cross-zonal capacity;
(a) promoting effective long-term cross-zonal trade with long-term cross-zonal hedging opportunities for market participants;
(b) optimising the calculation and allocation of long-term cross-zonal capacity;
(c) providing non-discriminatory access to long-term cross-zonal capacity;
The FCA entered into force as from 17 October 2016.
Documents prepared during the implementation of FCA:
EB is about creating a market where countries can share the resources used by their transmission system operators to make generation equal demand always. It is also about allowing new players such as demand response and renewables to take part in this market. All in all, the EB should help increase security of supply, limit emissions and diminish costs to customers.
EB establishes an EU-wide set of technical, operational and market rules to govern the functioning of electricity balancing markets. The significance of the pan-European Network Code for the electricity balancing has its origin in the fact that even after careful planning, producers, suppliers and traders may often find themselves out of balance and exposed to TSOs balancing and settlement regime.
The date of entry into force of the EB is 18 December 2017 (with the exception of Articles 14, 16, 17, 28, 32, 34 to 36, 44 to 49, and 54 to 57, for which the Regulation shall apply from 1 year after entry into force).
Documents prepared during the implementation of EB:
Proposals for the Terms and conditions for the balancing service providers and for the terms and conditions for balance responsible parties
LITGRID AB, in accordance to the Article 18 paragraph 1 of the EB, has prepared these proposals:
- terms and conditions for the Lithuanian balancing service providers (standard terms and conditions of sale and purchase of balancing services);
- terms and conditions for the Lithuanian balance responsible parties (standard terms and conditions of sale and purchase of imbalance) (hereinafter – Proposals).
Here you may find the text of Documents both in English and Lithuanian:
15 minute imbalance implementation concept
For the implementation of EB art 53(1) of 15 minute imbalance period Baltic TSOs have prepared the Implementation Concept document, that was amended taking into account responses from market participants during public consultation. It is foreseen that Baltic states will gradually implement 15 minute imbalance period until end of 2024. Implementation Concept document and Public consultation review summary can be found here:
Baltic TSOs report on balancing
Baltic TSOs have prepared the mutual Baltic TSOs report on balancing in accordance to EBGL Article 60(1) covering the last two calendar years (report period from December 18th, 2017 to December 18th, 2019). The mutual Baltic TSOs report on balancing can be found here:
