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[CWE Flow-Based Market Coupling] Announcement: Switch to extended LTA

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Dear Market Participants,

Following the presentation and explanation of the so-called extended LTA functionality, please be informed that this functionality will be activated on 1 December 2020 for Business Day 2 December 2020

Please be reminded that with the extended LTA approach, the market coupling algorithm now receives two domains representing the flow-based capacities of the CWE region:

·       The FB domain without LTA inclusion but with applied MinRAM; and

·       The LTA domain representing the long-term capacities of the CWE region.

With these two domains, the “Balas formulation for LTA inclusion” allows to greatly reduce the number of constraints required to describe the enlarged domain for LTA coverage, with a substantially positive impact on Euphemia performances.

Further information on the working of extended LTA can be found in annex 14.29 (Extended LTA formulation) and annex 14.30 ("pedagogical information on extended LTA inclusion"), of the CWE FBMC approval package, available at: https://www.jao.eu/support/resourcecenter/overview?parameters=%7B%22IsCWEFBMCRelevantDocumentation%22%3A%22True%22%7D 

Lastly, please note that the improved virtual branches will be continued to be used for reporting purposes.

Best regards,

CWE TSOs and NEMOs