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Home All news items {{item}} {{item.label}} Capacity mechanism : rules for remunerating cross-border capacity guarantees in 2020 {{vm.currentItem}}

The CRE has validated the set of rules for remunerating cross-border capacity guarantees for the 2020 delivery year

The French capacity mechanism was designed from the outset to take into account the contribution of interconnections to France’s security of electricity supply. From 2017 to 2018, this contribution has been factored in an implicit manner, i.e. by reducing the capacity obligation of obliged actors. Since the 2019 delivery year, this contribution has been factored in "explicitly" (with the exception of interconnection capacities with Switzerland), which means that it takes the form of capacity guarantees.

Two models of participation have been planned under a cooperation agreement entered into between RTE and the neighbouring countries’ transmission system operators. For the 2020 delivery year, no cooperation agreement has been established with the transmission system operators of neighbouring countries before the deadline of 30 June 2019. Furthermore, the simplified model applies and RTE is responsible for remunerating capacity guarantees corresponding to the statistical contribution of the various borders to the security of supply. For this delivery year, the volume of guarantees corresponding to the contribution of interconnections is 6700 MW. After validation by the CRE, in its deliberation no. 2019-133 of Thursday 20 June 2019, RTE will put these capacity guarantees up for sale during the last session of the auction held by EPEX Spot preceding the start of the delivery year. This auction is scheduled for December 12, 2019. These capacity guarantees will be offered for sale without a reserve price.

Concerning the contribution of the interconnections over the 2019 delivery year, RTE auctioned the corresponding capacity guarantees at the 16 May 2019 auction. The auction resulted in a part of the capacity guarantees (1920.2 MW) not being sold. RTE will submit for approval of the CRE the sale of this remaining volume in 2020, at the next capacity guarantees auction for DY2019, under identical terms (offered for sale “without a reserve price”).

To learn more about the taking into account of cross-border capacity contributions, RTE provides the following link: