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‘4 All I SUS f)fOpOSal 101 Jaicuiation Keglons (IJ(Ks) m accoruance Article 15(1) entso ofthe Commission Regulation (EU) 2015/1222 of2’l July 2t)15 establishing a Guideline on Capacity Allocation and Congestion Management Annex Ia (for information only) All TSOs’ proposal for Capacity Calculation Regions (CCRs) in accordance with Article 15(1) of the Commission Regulation (EU) 2015/1222 of 24 July 2015 establishing a Guideline on Capacity Allocation and Congestion Management Definition of the Capacity Calculation Regions (CCRs) in accordance with Article 15(1) of the Commission Regulation (EU) 2015/1222 of 24 July 2015 establishing a Guideline on Capacity Allocation and Congestion Management (CACM Regulation) 29 October2015 ENT-SQ 4 A 17 fCf-’ 4:’:_.. r :ordancewith e n t S O Whereas (1) This document is a common proposal developed by all Transmission System Operators (hereafter referred to as “TSOs”) regarding the determination of capacity calculation regions (hereafter referred to as “(‘CR(s)”) (hereafter refened to as “CCRs Proposal”). The QCRs Proposal takes into consideration the regions specified in point 3(2) ofMnex I to Regulation (EC) No11/2Ot)9 of the European Parliament and of the Council of 13 July 2009 on conditions for access to the network for cross border exchanges in elec’icity (hereafter refelTed to as “Regulation (EC) No 714/2009”) including all existing bidding zone borders from EU member states that joined the EU after the entry into force ofAnnex I ofRegulation (EC) No 714/2009 and that were not yet listed this Annex I. (2) This (‘CRa Proposal takes into account the general principles and goals set in the Cornission Regulation (EU) 2015/1222 establishing a guideline on capacity allocation and congestion management (hereafter referred to as the “CACM Regulation”) as well as Regulation (EC) No 711/2009. The goal ofthe CAUM Regulation is the coordination and harmonisation of capacity’ calculation and allocation in the day ahead and inn’aday cross border markets, and it seft requirements for the TSOs to co operate on the level of C’CRs, on a pan European level and across biddg zone borders. (3) Capacity calculation for the day’ ahead and intrnday market tirneframes should be coordinated at least at the regional level to ensure that capacity’ calculation is reliable and that optimal capacity is made available to the market. For this purpose, regions where such coordination is needed should be defined by all ISOs. In accordance with icle 2 (Defmifions) of the CACM Regulation these regions are defmed as “capacity calculation regions”, meaning “the geographic area in which coordinated capacity calculation is applied”. Therefore, a CCR needs to consist of a set ofbidding zone borders for which the capacity calculation shall be coordinated by’ TSOs in accordance with the CAt’M—Regulation. (4) This CC’Rs Proposal includes a detailed description ofthe CCRs, coveng the existing biddg zone borders between and within European Union (EU) Members States, to which the (‘ACM Regulation applies, and some new ones expected to be established by the end of2Ol S and to be operated by TSOs certified at the moment of submission of this proposal to all regulatory authorities. The inclusion of ffithre bidding zone borders allows for an early approval of the assignment of these bidding zones borders in the relevant CCR and as such for a smooth implementation ofthe CACM Regulation. (5) The CCRs Proposal also includes the Gesmany/Luxembourg Ausu’ia (DE/LU AT) bidding zone border iimier the fnllnwin orounds: p. -l.... F’U/TTT Am 1.1 ., , r’uu r’r’D i.,. ._..I_f:... LU1I included consultation period, following the Opinion of the Agency for the Cooperation of Energy Regulators No 09/2015 dated 23 September 2015 (hereinafter refeired to as ‘e Agency Opinion No 09/2015”). In this opinion the Agency stated that the “implementation of a capacity allocation proccdurc on the DL’ .1 T border is rcguircdpursuant to Article 16(1) of Regulation (EQ No 71 1/2009 and points 12, 1.4 and 3.1 ofArrncx I to this Regulation. Jul 1 )U:; piopuai br apaciiy’ (a1cu1ation Regions (CCRs) in accordance with Article 15(1) entso ofthe Commission Regulation (EU) 2015/1222 of2l July 2015 establishing a Guideline on Canacitv Allocation and Conegtion Management Moreover; such implcrncntation shall be coordinated at icast at thc lci’cl ofthc CEE rcgion. Thus, thc DE A Tboidcrshouldform a constitucntpart ofthe CEE rcgionfor thc application ofcoordinatcd capacity calculation, optimisation ofallocation and sccurc opcration ofthc nctwork, as required bypoint 3.5 ofAnncx I to Regulation (EC) No 714/2009. The Agency asks further the TSOs and the rcgulatoiy authorities ofthe CEE region to “commit, within 4 tnonths of tlw datc in which this Opinion is adoptcd and publishcd, to thc adoption of a cooidii;atcd capacity’ allocation proccdurc on thc DE AT bordcr, with a realistic but ambitious implcrncntation calcndar with concrctc stcps” for the capacity allocation on this hefde b. All ISOs understand that the Agency Opion No 09/2015 explicitly regufres the implementation of a capacity allocation procedure on the DE AT border which according to the same opinion shall form a constituent paft of the CEE region. All TSOs undetand that this opinion has been approved by regulatoiy authoñcs in accordance with the applicable governance rules of the Agency’s Board of Regulators. The Agency Opinion No 09/2015 therefore reflects a common position ofthe re1atory authoties. With this QCRs Proposal all fSOs take over and implement this coion decision ofregulatory authorities, also in anticipation of an amendment requirement or an Agencys decision according to Article 9 (12) of the CAC’M Regulation which would othenvise be imposed. With the aprtwa-1 ofthis (CRs Proposal according to £icle 9 (6) b) ofthe CACM Regulation the appong regulatory authOflties nrc able to inherently reconfirm the decision included in the Agency Opinion No 09/2015 requesting an assignment ofthc bidding zone border Germany A1]2frifl (r\L’ AT\ fn f1i CPF region and the understanding T’f1 niitlincrI in thi paragraph. (6) This (CRs Proposal, with the oposed CCRs configuintion, represents a dynnmic and pragmatic pan European approach with a shoft and mid tenn view ofthc geographical scope ofCCRs that supports coordination across the bidding zone borders—where there is the highest observed interdependence. The need for larger CCRs will be assessed in due time and as early as possible by the relevant TSOs after some experience on coordination within a (‘CR and between CCRs in accordance with the CACM Regulation has been gained. (7) According to Article 9 (9) ofthe (‘ACM Regulation, the expectedimpact ofthe proposed CCRs on the objectives of the CMM Regulation has to be described. The impact is presented below (points 8 to 16 of the Whereas) taking into account that the CACM Regulation places the definition of these CCRs as well as the methodologies to be applied in these regions within a framework of continuous harmonisation, applying the most efficient capacity calculation methodology within each (‘CR. (8) The proposed C’Rs conibute to and do not in any way hamper the achievement of the obiectives of Article 3 of (‘ACM Reaulation. In narticular. the omnosed CCRs serve the interuepenoencies oet’’een tile cross zonai capacities can ne moueiiea most accumteiy anu efficiently, and the optimal level ofeross zonal capacity can be given to the market. The number of CCRs across Europe also affects the opl use of sission infrascthre and the calculation of cross zonal capacity. rgc number —of--CCRs decrease the coordination ENTS FF 1 A 1 n t S 0 y e ) ofthe Commission Regulation (EU) 2015/1222 of2l July2015 p Guideline on Capacity Allocation and Congestion Management possibilities a’”” --‘ , +..I ,,,., infrastructure. (9) However, some smaller (‘CRa are-proposed in order to ensure operational efficiency and better consideration of regional features, such as generution x, consumption behavior and gid topology, in capacity calculation. This possiblli)’ implies an optimallevelofcross zonal capacity for the market without endangering the operational security in case the need for coordination across bidding zone borders is low. On the other hd, where coordination needs across bidding zone borders are high, as in highly meshed tt’ansnssion gds, a geographically larger CCR (and a smaller number ofCCRs) is beneficial to ensure the optimal use oftransmission infrastructure. Thus, the optimal number of CCRs is a ixture of CCRs, according to which in continental Europe a few, geographically large C’CRs exist, and in other pafts of Europe, smaller CCRs are proposed. This CCR configuruüon conthbutes to the optimal use of ünsission frastrncture in-accordance with Article 3(b) ofthc (‘ACM Regulation. (10) The proposed CCRs configuration also affects-positively operational security in accordance with Article 3(c) ofthe (‘ACM Regulation. If interdependency bct’veen bidding zone borders is not correctly taken into account in capacity calculation, cross zonal capacity given to the market might be too high, enabling too high power flows on transmission lines and thus, endangering the operational security of the transmission system. Usually in these cases, less cross zonal capacity would be given to the market to ensure operational secu; at the expense of opümal use of ttnnsission infinshcturc. The proposed CCRs configuration allows for a proper coordination between bidding zone borders and for modelling of regional features based on a common grid model, which give a high level of cross zonal capacity to the market without endangering operational security. (1 1) The CCRs serve the objective ofoptirnising the calculation and allocation ofcross zonal capacity in accordance with Article 3(d) ofthe CACM Regulation as QCRs lay down coordination within a CCR and between CCRs. This is the fwst time that (‘CRa will be commonly and comprehensively defined in Europe, laying the ground for the development ofregional common capacity calculation methodologies and establishment of Coordinated Capacity Calculator for each CCR.

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