Guiding Core from legislation to operation

The integration of European electricity markets is key to Europe’s energy transition, and exchanging information on cross-border capacity is crucial in making this happen. The Capacity Calculation Regions (CCRs) are a major vehicle in turning EU legislation into a functioning operational system. Magnus Energy facilitates the largest region – Core CRR – in achieving major milestones, such as the Day-Ahead Flow-Based Market Coupling (FBMC).

Key figures

• Go-live date: 8 June 2022
• 16 TSO
• 10 NEMOs
• 13 countries span the Core CCR: Austria, Belgium, Croatia, Czech Republic, France, Germany, Hungary, Luxembourg, Netherlands, Poland, Romania, Slovakia, Slovenia

Turning European legislation into operation

The EU aims to create a sustainable energy union with an integrated European electricity market, which is carbon neutral by 2050 and provides households and businesses with secure, sustainable, and affordable energy. This transition requires the use of the European electricity system to the full extent. To achieve this, the EU issues legislation and regulations in which existing local electricity markets are transformed into an integrated EU electricity market.

Working together across Europe

Transmission and distribution, as well as trading on the electricity market, are complex matters. Transmission System Operators (TSOs) and Nominated Electricity Market Operators (NEMOs) across Europe need to translate EU legislation into concrete methodologies and project plans. All with the final goal to implement this in their operations. Magnus Energy facilitates many European energy market players with the translation of European legislation into concrete implementation and operations.

Core CCR’s Day-Ahead Flow-Based Market Coupling

A prime example is the Core CCR. This program involves 16 TSOs and 10 NEMOs at the heart of Europe. It spans Austria, Belgium, Croatia, the Czech Republic, France, Germany, Hungary, Luxembourg, the Netherlands, Poland, Romania, Slovakia and Slovenia. One of its key projects was the Day-Ahead FBMC.

The FBMC, already in use in its previous regions, optimises the exchange of power within a region, adding sustainable value and boosting socio-economic welfare. At the same time, it enhances security of supply as it creates better visibility across the whole grid. Furthermore, it increases price convergence in the whole region. Developing and implementing the FBMC for the Day-Ahead Timeframe would signify a major milestone for Core.

Dedicated complex program management

Magnus Energy has provided a dedicated Program Management Office for the Core TSO and the Core TSO & NEMO joint programme since 2016. Working from our unique complex program management approach, which addresses the five main factors that make these projects so complex:

• Multi-party cooperation. It is a program gathering many players from different background, bridging cultural & technical differences.
• International context. It gathers multi-cultural groups of individuals working on new or innovative solutions.
• Tight deadlines and a significant workload. All stakeholders need to be committed to make this project a success after thorough and long-lasting discussions. Succeeding is the only option!
• Different national challenges and legislation. The project receives public attention and can be – if a crisis arises – in the eye of a storm.
• Many stakeholders involved. Within the project, stakeholders can have their own agendas and interests.

Our main task for the DA FBMC project was the overall project management, focusing on timely achievement of all project objectives, facilitating the decision-making process, consortia management and steering towards project go-live. In addition, we shared our expertise by filling dedicated roles such as IT project management, convening the Core Day-Ahead FBMC project team, test management, stakeholder management and business analysis support. All aimed at moving the project and parties forward.

One successful go-live, more to come

On 8 June 2022, the Core Day-Ahead FBMC officially went live across the entire Core CCR. It now optimises the exchange of power within the Core region, which enhances security of supply and increases price convergence in the whole region.

In 2024 and 2025, the coordination was extended to the Intraday timeframe, with the go-live of several Core Intraday Capacity Calculation processes – IDCC(a), IDCC(b) and IDCC(c). These processes feed into the respective Intraday Auctions and continuous trading process on the European Cross Border Intraday platform (XBID).

“Leading the Core CCR steering group meetings, together with Magnus Energy, required a fantastic intellectual effort. The topics were complex, and the group was diverse in both character and experience. Reaching decisions wasn’t always easy. Magnus Energy’s help in preparing and moderating meetings was invaluable.” – Gheorghe Visan, former chair of Core CRR

Contact our experts

Our experts are here to guide you. Reach out to our director Lars Beke or leading programme manager Line van Kesteren to learn more.