The Trade & Cooperation Arrangement (TCA) between the United Kingdom and the European Union sets out proposed trading arrangements to replace the UK’s membership of the Single Day Ahead Coupling (SDAC) market. Annex ENER-4 of the TCA sets out the broad requirement for this new market design, known as Loose Volume Coupling (LVC). Under LVC, the volume and flow of interconnectors between the UK and EU bidding zones directly connected to the UK are determined independently from the pan-EU SDAC market process.
As set out in the TCA, a first step in the development of the LVC solution is the delivery of a Cost Benefit Analysis (CBA). Relevant UK and EU TSOs have worked together with their consultancy partners (CEPA) to publish this first stage deliverable which can be found at the link below.
UK TSOs would like to invite wider stakeholder feedback from across the industry on the published CBA report and the supporting presentation. While the TCA sets out a formal consultation period for the development of technical procedures at a later stage, general industry feedback on the broad design of LVC as set out in the report and presentation is a key first step in the progression of the solution.
Please provide your feedback to the Nemo Link’s Customer Team or directly to any of the UK Interconnectors, ideally by 17 May 2021:
- BritNed Development Limited
- EirGrid Interconnector DAC
- ElecLink Limited
- Moyle Interconnector Limited
- National Grid Ventures (representing IFA, IFA2 and NSL)
Industry feedback sessions are planned as follows:
- UK – EFET-Energy UK TCA Forum (11th May)
- UK – Joint European Stakeholder Group (11th May)
- SEM – All Island Industry Forum (29th April)
Please contact us or any of the UK Interconnectors if you would like feedback to be shared with any other industry group not listed here.
The CBA and associated documentation is published here:
- MRLVC_ CBA Summary Report April 2021
- A more detailed analytical results document can be downloaded here
The EU TSOs will present the main findings of the CBA on the MRLVC in a workshop taking place on 4th May 2-4:30 PM CET. If you are interested in participating, please register here: https://attendee.gotowebinar.com/register/7281844923501461264
