A brief historic introduction
The development of the CACM Regulation started in 2011 when the Agency developed the Framework Guidelines on Capacity Allocation and Congestion Management for electricity. These Framework Guidelines were adopted on 29 July 2011.
Among other elements, the Framework Guidelines included provisions for the forthcoming development of the Network Code on Capacity Allocation and Congestion Management. The core of these requirements was centred around cross-zonal capacity calculation and allocation in the day-ahead and intraday timeframe.
Calculation of capacities between bidding zones should maximise the possibilities to trade between bidding zones taking into account the limitations of existing network infrastructure. Capacity calculation should be efficient, transparent, and strongly coordinated among TSOs. Flow-based capacity calculation should be applied in highly meshed networks, whereas coordinated net transmission capacity (CNTC) calculation may be used in less meshed networks. In the day-ahead timeframe cross-zonal capacity should be allocated via implicit auction (single coupling). For the intraday timeframe cross-zonal capacity should be allocated through implicit continuous allocation (single coupling), which can be complemented with implicit auctions in specific cases.
The Framework Guidelines also define a process to regularly investigate and report on whether existing bidding zones are efficient. In case inefficiencies are identified, the review of bidding zones should be triggered to compare the overall market efficiency of alternative bidding zones configurations against the existing one.
Based on these Framework Guidelines, ENTSO-E was tasked to develop the Network Code on Capacity Allocation and Congestion Management. Subsequently, the draft network code was submitted to the Agency for opinion based on which ENTSO-E revised the network code and resubmitted it to the Agency. Finally, the Agency adopted a recommendation to the European Commission to adopt the Network Code on Capacity Allocation and Congestion Management subject to specific amendments proposed by the Agency. Following this recommendation, the European Commission further revised the network code, which was then finally adopted as a Commission guideline in July 2015 and entered into force in August 2015.
The detailed dates and documents of the above actions are presented below:
Action 1: 29 July 2011: The Agency adopts the Framework Guidelines on Capacity Allocation and Congestion Management for Electricity
Action 2: 27 September 2012: ENTSO-E submits the Network Code on Capacity Allocation and Congestion Management to the Agency
Action 3: 19 December 2012: The Agency adopts the Opinion on the Network Code on Capacity Allocation and Congestion Management
Action 4: 14 March 2013: The Agency adopts the Recommendation on the Network Code on Capacity Allocation and Congestion Management