NEMO Committee announces launch of joint public consultation on Algorithm Methodology
All NEMOs and all TSOs have launched a joint public consultation, pursuant to Article 12 of Commission Regulation (EU) 1222/2015, on Algorithm Methodology review. It includes algorithm change control and algorithm monitoring, Single Intraday Coupling requirements annex amendment for supporting Intraday Auctions, as well as Single Intraday Coupling product methodology.
All European National Regulatory Authorities (NRAs) have agreed to approve the all NEMO proposal for the Market Coupling Operator Plan (MCO Plan).
On the basis of this agreement, each Regulatory Authority will subsequently adopt a decision to approve the amended proposal for the MCO Plan by 26 June 2017. Here you will find the approved MCO Plan.
On 14 November 2017, ACER published its decisions on the NEMOs’ proposals for harmonised maximum and minimum clearing prices for single intraday coupling and single day ahead coupling.
ACER set the maximum and minimum clearing price for single day-ahead coupling (SDAC) to 3,000 and ‑500 EUR/MWh respectively, whereas for the single intraday coupling (SIDC) to 9,999 and -9,999 EUR/MWh respectively.
In the event that the clearing price exceeds 60 percent of the harmonised maximum clearing price for SDAC, the latter shall be increased by 1,000 EUR/MWh the next day, and shall be applied in bidding zones five weeks later.
However, if during this five-week period, the clearing price exceeds 60 percent of the newly increased harmonised maximum clearing price for SDAC, the harmonised maximum clearing price for SDAC would increase again with effect from the next calendar day onward, and applied in bidding zones five weeks later. This transition period aims to give time to market participants to adjust to the amended value of the harmonised maximum clearing price for SDAC, while minimising the impact on free price formation.
The harmonised maximum clearing price for Single Intra Day Coupling (SIDC) should never be below the harmonised maximum clearing price for Single Day Ahead Coupling (SDAC). This means that the harmonised maximum clearing price for SIDC shall be amended in the event that harmonised maximum clearing price for SDAC is increased above the harmonised maximum clearing price for SIDC. In such a case, the harmonised maximum clearing price for SIDC shall also increase to be equal to the harmonised maximum clearing price for SDAC. Any such change shall be implemented and applied at the same time that the harmonised maximum clearing price for SDAC is applied.
The new Harmonized Maximum and Minimum Clearing Prices should be implemented immediately after the market coupling operator (‘MCO’) function has been implemented (expected end June 2018).
In ACER’s view this effectively facilitates free price formation principles and is able to substitute the value of lost load (VOLL).
The decision and related annexes are also published on the ACER website: http://www.acer.europa.eu/Official_documents/Acts_of_the_Agency/Pages/Individual-decision.aspx