Dear Market Participants,

In the context of the implementation of Regulation (EU) 2019/943, part of the Clean Energy Package, several changes will happen to the calculations as done by TenneT TSO B.V. for CWE Flow-Based Day-Ahead Capacity Calculation.

On 20 December 2019, the Ministry of Economic Affairs and Climate Policy in the Netherlands has established an action plan containing measures that contribute to increasing the availability of cross-zonal transmission capacity for electricity trade. As result of this action plan, a linear trajectory for the capacity to be provided in accordance with article 16(8) of Regulation (EU) 2019/943 is established. The action plan, including the values of the linear trajectory per CNE, is published on the website of the Ministry of Economic Affairs and Climate Policy (https://www.government.nl/documents/publications/2019/12/20/action-plan-increasing-the-availability-of-cross-zonal-transmission-capacity-for-electricity-trade).

Next to the action plan, TenneT TSO B.V. submitted a request for derogation from the minimum level of capacity to be made available for cross-zonal trade. This derogation was approved by the Authority for Consumers and Markets on 20 December 2019, and is published on the website of ACM (https://www.acm.nl/nl/publicaties/verlening-derogatie-tennet-artikel-16-negende-lid-van-verordening-2019-943).

According to this derogation, TenneT TSO B.V. is performing a parallel run for the day ahead capacity calculation process in CWE in the first three months of 2020. During the parallel run, TenneT will continue to apply the currently approved methodology and practices in the CWE region to the operational day-ahead capacity calculation process in CWE. For the avoidance of doubt, the current methodology in the CWE region includes the application of a minimum capacity for cross-zonal trade on each CNEC within the CWE region equal to 20% of the maximum capacity according to the operational security limits.

From 1 April 2020, the combination of the linear trajectory from the action plan and the provisions of the Regulation will be applied.

Although the derogation does not require TenneT to publish the results of the parallel run, TenneT has decided to do so in order to provide transparency to market parties and other stakeholders on the effects of the Action plan and derogation for the Netherlands. After a period of stabilization of the new process and tools, resolving detected errors and issues and extensive verification of the outcomes of the tools, finally the results are of sufficient quality and are considered representative for the situation per 1/4/2020.

The publication of the parallel results has been started per Business Day 22/02/2020, and will continue until BD 31/03/2020. For the Business Days before 22/02/2020, no data will be published. The results for the Dutch CNECs will then be published every Thursday on a weekly basis, using a format similar as available via the Utility Tool of JAO. The data can be retrieved in the sheet “Final Flowbased domain”

We trust to have informed you sufficiently.

Best regards,

TenneT TSO B.V.