Invitation to comment on NordREG’s proposal for “Methodology for assessment of the Nordic forward market”

NordREG has been preparing a common approach on how to perform the upcoming analysis of the cross-zonal hedging opportunities in line with Commission Regulation (EU) 2016/1719 of 26 September 2016 establishing a guideline on forward capacity allocation (FCA GL) article 30.

Below you will find a link to the draft methodology, based on which the regulators are planning to conduct the upcoming study. All Nordic market participants are hereby invited to comment on the draft “Methodology for assessment of the Nordic forward market”.

NordREG is especially interested in hearing the stakeholders views on how the approach could be improved to better analyse the hedging opportunities in the Nordic markets. The background for the assessment is in the requirements in FCA GL article 30. The previous assessment was conducted in 2016-2017, please see links below.

The end objective is for regulators to assess whether there are sufficient hedging opportunities in the Nordic electricity market. If the hedging opportunities in two adjacent bidding zones are deemed insufficient, the regulators on each side of the bidding zone border must, in a coordinated manner, make decisions targeted at the TSO’s on each side to introduce long term transmission rights (LTTRs) or other measures to improve hedging opportunities.

The timeline looks as follows:

  • This current consultation on proposed evaluation method (May-June 2020).
  • Internal regulator assessments and decision on way forward (summer 2020).
  • Data collection, calculations, assessments and draft decisions. (the timeline and exact approach varies per country).
  • Consultations on the assessments and the hedging needs of market participants according to FCA art. 30(3)(a) (circa winter 2020-2021).
  • National decisions on whether there are sufficient hedging opportunities and coordinated decisions per bidding zone border on introducing LTTRs or not (deadline April 2021)*.

Last day for replies – 2 June 2020

Please send your views, comments, considerations etc. in writing to registrator@ei.se with copy to tristan.norman@ei.se. Please mark your answers to the consultation with the following reference number 2020-100867.

Per default replies are public, but if you wish to be anonymous, please indicate this.

Deadline for replies: 2 June 2020 EOB.

*As Norway has not implemented the FCA GL in national legislation at this point, the deadline for Norwegian borders will depend on the implementation time.

Links to 2016-2017 documents