ČEPS plans to allow Czech entities to participate in Polish capacity auctions

ČEPS, the Czech transmission system operator, plans to allow Czech electricity generators to participate in Polish capacity auctions from 2025. The auction to secure capacity for 2025 is due to take place as early as the end of this year.

The Polish capacity mechanism, approved by the European Commission in 2018, is set to open to Czech entities at the earliest possible date, namely from 2025. ČEPS and the Polish transmission system operator are currently negotiating an agreement, the principles of which will then be incorporated into the national rules (agreement) of the Czech capacity provider.

In addition to electricity generators from the Czech Republic, applicants from Slovakia, Germany’s 50Hertz transmission system, Sweden and Lithuania will also be able to participate. The maximum volume of capacity procured from individual zones will always depend on transmission capacity at the border with the respective zone. Exact values will be published by the Polish transmission system operator in the third quarter of this year.

Resources with a capacity of 2 MW will be eligible to participate, and demand-side response units will also be permitted. The role of ČEPS, together with the other transmission system operators from the so-called synchronous area (SEPS and 50Hertz), will primarily be to guarantee the accuracy of information, provide data for assessing participation, and cooperate in verifying the eligibility and readiness of Czech participants.

The capacity mechanism scheme was approved by law in Poland in January 2018 and was approved by the European Commission a month later. The Commission assessed whether the proposed scheme complied with state aid rules.

No capacity mechanism has been introduced in the Czech Republic, and there have not yet been any serious discussions about one.