AT-DE Cross-Border Procurement of aFRR

As of 1st of February 2020, the Austrian and German TSOs will start a cooperation for cross-border procurement of aFRR. To optimize the allocation of cross-zonal capacity between the Day Ahead market and the balancing capacity market they will perform a monthly Cost-Benefit-Analysis (CBA) which is based on maximizing social welfare. In consequence of this CBA, the volume of Long Term Transmission rights (LTRs) on the Austrian-German Border available for monthly auctions can be reduced, if the benefit of allocating cross-zonal capacity for the balancing capacity market is higher than for the Day-Ahead Market. Information about the CBA, as well as information about the cooperation, can be found here.

The share of cross-zonal capacity that will be reserved for the exchange of balancing capacity on the Austrian-German Border shall be included in the amount of 4.9 GW which is usually available on this border. Therefore, the capacity available for LTRs needs to be amended based on the results of the CBA. The Austrian and German TSOs agreed to allocate a maximum of 80 MW for the cross-border procurement of aFRR.

For February 2020 the CBA resulted in the following allocation of cross-zonal capacity to the balancing capacity market (see also here):

80 MW for the direction DE>AT
80 MW for the direction AT>DE

These values have been considered in the capacities offered in the monthly auction of LTRs for February 2020.