Public Consultation of NEMOs and TSOs on the Co-optimisation R0

Overview

On 23 September 2024, ACER issued its decision No 11-2024 on amendments to the price coupling algorithm and the continuous trading matching algorithm, including the common sets of requirements (the “Algorithm Methodology”). Subsequently, Article 4.15 of the amended Algorithm Methodology requires NEMOs, in cooperation with TSOs to carry out R&D to enable the implementation of co-optimisation in the SDAC algorithm within defined areas, starting in 2024 and finalising in November 2026.

On 3 April 2024, NEMOs and TSOs submitted a draft of the first of the required reports, referred to as “R0-Report” to ACER, covering concepts of Bidding Products, Bid Design and Pricing.

As required by Article 4.16(a) of the Algorithm Methodology, NEMOs, in cooperation with TSOs, now launch a public consultation on the draft report. The documents for consultation include the draft report (R0), including its annexes, as well as ACER’s assessment of the draft report.

Why your views matter

Balancing capacity is presently procured by TSOs largely on a national basis, to ensure the availability of balancing energy in real time. Co-optimisation implies that balancing capacity is procured together with energy in SDAC and subject to cross-zonal exchange to maximise the sum of economic surplus in both markets. In theory, this is a more efficient way to use scarce resources for energy, balancing capacity and cross-zonal exchange capacity. However, the implementation of co-optimisation involves significant changes that will affect all market participants.

Disclaimer: Responses to this questionnaire are anonymous. No company identifiable information or answers will be published. NEMOs and TSOs will report publicly only aggregated results to be reflected in the R1 report. The raw input will however be shared with ACER (Agency for the Cooperation of Energy Regulators) and will be used by NEMOs and TSOs to inform the ongoing R&D work on co-optimisation.