Minimum Offered Volumes in Flow-based Allocation of Long-Term Transmission Rights

Long-term Transmission Rights in the European CORE Flow-based Capacity Calculation Region are currently auctioned based on capacity offered as Available-to-Transfer Capacity (ATC).

In a near-future, the auctions should move to a Long-term Flow-Based Allocation (LTFBA) of the offered capacity, where rights on all CORE borders are auctioned simultaneously. This will have two important consequences:

1. borders will compete with each other via flow factor competition describing how rights allocated on a given border influence the capacity that can be offered on other borders,
2. collateral requirements, which are financial guarantees that market participants must post before the auction, will have to be posted for bids in a same auction for all borders, increasing the required amounts compared to an ATC setup where auctions take place sequentially.