Participation of German capacities in the Belgian capacity mechanism

As part of the "Clean Energy Package" (CEP) legislative package, the EU Commission has defined requirements for both the introduction and the design of capacity mechanisms. Several EU member states have already introduced different types of capacity mechanisms in order to address national concerns regarding security of supply. A key feature of capacity mechanisms is the remuneration of the capacity (MW) provided. This distinguishes capacity mechanisms from the so-called energy-only market, in which the energy actually supplied (MWh) is remunerated.

According to the provisions of the Electricity Market Regulation (Art. 26 Regulation (EU) 2019/943), capacity mechanisms must be opened up to the cross-border participation of foreign capacities. 

The possibility of cross-border participation is now becoming a reality in Belgium. The Belgian authorities introduced the Belgian Capacity Remuneration Mechanism (CRM) with a view to maintaining the required level of security of supply for Belgium. The Belgian transmission system operator Elia is responsible for implementing the capacity mechanism. The German transmission system operators are supporting Elia with the implementation and are available in case of questions for German capacities providers.

The first "delivery period" allowing for cross-border participation will be 2025 to 2026. German capacities can participate in the corresponding auction in September 2024, provided they are directly connected to the electricity supply grid of a German transmission system operator. The auction will be preceded by a prequalification process, which will begin in April 2024 with a so-called "light prequalification". The timeline for 2024 is as follows:

An overview of the framework conditions for participation and the individual processes can be found here (XB CRM OnePager). 

Further information on the capacity mechanism can be found on the website of the Belgian transmission system operator ELIA (ELIA Website).

ELIA will offer digital information events for all interested market participants. Therefore, Elia is organizing general and detailed info sessions on the CRM to provide you with a comprehensive understanding of the mechanism, as well as detailed information on its most complex modalities.

The goal of the general session is to provide a comprehensive introduction to the CRM for those who may not be familiar with it. Elia will cover the fundamental principles, key features, and regulatory requirements of the mechanism, as well as plenty of examples on what participation to this market mechanism means.

The goal of the detailed session is to exemplify the most complex modalities of the mechanism. Elia will delve into the intricacies of the mechanism, providing a detailed understanding of its operations and the implications for the energy market.

Further, Elia will offer a session dedicated to cross-border participation. The goal of the XB CRM session is to provide a comprehensive introduction to the CRM and special characteristics of cross-border participation.

General session: Two identical sessions* are organized on: 
- 23/02/2024 from 13:00 to 16:00, and
- 15/03/2024 from 13:00 to 16:00.

Detailed session: Two identical sessions* are organized on: 
- 01/03/2024 from 9:30 to 12:30, and 
- 22/03/2024 from 13:00 to 16:00.

* The sessions are interchangeable; the same information will be presented.

XB CRM info session: 
- 07/03/2024 from 13:00 to 16:00.

In order to ensure efficient sessions, could you please confirm your participation via email before 16/02/2024 to taskforce.crm@elia.be, indicating which sessions you would like to attend, along with the names and contact details of all attendees.  

In case of questions please contact the TSO responsible for your control area:

xb-capacitymechanism@50Hertz.com

xb-capacitymechanism@Amprion.net

xb-capacitymechanism-de@Tennet.eu

xb-capacitymechanism@Transnetbw.de