The National
Energy Regulatory Council (NERC) has applied to the
transmission system operator (TSO) LITGRID AB, which, together with Latvian and
Estonian TSOs on 9 October 2020 prepared and submitted a draft of Terms,
Conditions and Methodology on Cross-Zonal Capacity Calculation, Provision and
Allocation with Russia (you can
download the relevant material here).
In the referral, the NERC specifies:
• as no supporting information was
provided with the draft Methodology,
which was requested by the NERC
in response to comments provided during the public consultation, therefore,
the comments are requested to be re-assessed, in particular:
1) provide detailed information on the simulation of physical and
commercial electricity flows of Lithuania, Latvia, and Estonia after the launch
of the Astravyets nuclear power plant, as well as changes in the balances of
the Baltic energy system after the launch of the Astravyets nuclear power
plant, which would allow assessing the real impact of the formulas used in the
Methodology and their components on the calculation of capacity with Russia;
2) to disclose the values of the
components/parameters used in the capacity calculation formulas and provide
explanations of how they will be determined.
NERC requests the
data to be submitted by 21 October 2020.
Also, given that market participants
indicated in the public consultation that insufficient information was provided
on the technical (Total Transfer Capacity) and commercial
interconnection capacities (Net Transfer Capacity) with third countries,
it is not clear what would be projected capacities after Astravyets nuclear
power plant launch, market participants and NERC have questions about the
compatibility of the Methodology with the Law of the Republic of Lithuania on
Necessary Measures of Protection against the Threats Posed by Unsafe Nuclear
Power Plants in Third Countries and submit a proposal to organise a public hearing
for market participants. NERC encourages LITGRID AB to continue the public
consultation procedures, i.e. to publish the document and received comments/suggestions
as soon as possible, as well as to organise a public hearing to stakeholders
and electricity market participants together with Latvian and Estonian TSOs to
present and explain the Methodology and planned changes and their impact on the
capacity determination with third parties.