CRM implementation

Market parties can discuss the development of the capacity remuneration mechanism (CRM) with the CRM Task Force.

What is the CRM?

The introduction of a capacity remuneration mechanism for the Belgian market is part of the federal government’s energy strategy, which lays out a number of new measures designed to guarantee Belgium’s security of supply in the long term.

The federal government decided to incorporate provisions for the creation of a capacity remuneration mechanism (CRM) into the Act of 29 April 1999 on the Organisation of the Electricity Market (‘the Electricity Act’).

In 2018, a working group – consisting of representatives from the office of Federal Energy Minister Marghem, the Federal Public Service Economy – DG Energy, the federal regulator CREG and Elia – produced a law proposal on the capacity remuneration mechanism. The law proposal was debated and adopted on 4 April 2019 and is published in the Belgian Official Gazette on 22 April 2019 (Dutch versionFrench version). 

A CRM Task Force was created to discuss the design principles of a CRM with the market parties. 

Information and documentation related to the Capacity Remuneration Mechanism to be put in place on the Belgian market is made available on this page.

Federal Grid Code

In order to guarantee the necessary level of competition between new generation projects, Elia identifies the need to modify some articles related to the connection process as currently described in the Federal Grid Code. This note explains the general principles behind the proposal and the proposed modifications.

Survey – June 2019

The topics of “strike and reference price” and “Pay-as-Bid versus Pay-as-Cleared” were discussed several times in the TF CRM meetings. For each topic different options were proposed and extensively discussed. During the TF CRM of 13 June 2019 it was requested to the stakeholders to state their preference related to these two topics.

The received answers are :

Public Consultations

Several public consultations are held within the framework of the design and implementation of a Belgian CRM as foreseen by the law of 4 April 2019 modifying the Electricity Law and published in the Belgian Official Gazette on 22 April 2019 (“CRM Law”) (Dutch versionFrench version). Links towards these consultations are provided below :

2019

2020

2021

  • FPS Economy - Public consultation on a methodology to obtain an individual derogation of the intermediate price cap [02.02.2021 – 14.02.2021] (Dutch version – French version)

Documents

Within the framework of the design and implementation of a Belgian CRM as foreseen by the law of 4 April 2019 modifying the Electricity Law, Elia organized two batches of design notes for public consultation. 
 

Following to the received feedback during the public consultations, Elia proposed a number of modifications to the initial proposed design.  The consultation report contains a table per design note, a reply on each remark and if it has been considered in the updated design or not.
Elia updated the initial design notes taken into account the feedback received from stakeholders during the public consultation and as described in the above consultation report. The design reflected in these updated design notes corresponds to the design described by Elia in the draft market rules and draft royal decree on the methodology as published end of 2019 below.

Given the multiple changes in the “Prequalification” and “Secondary market” design notes, only clean versions without track changes of those documents are available.

In order to have a better understanding of the proposed design, Elia drafted a document with some full-cycle use cases for different kind of capacities and time schedules, which was presented during the TF CRM meeting of February 6th 2020. Answers on feedback received from market parties after this meeting are summarized in the “Q&A” document.
The updated design proposals have been transformed into the two main deliverables for which Elia needs to make a proposal.

During September 2020 Elia organised a public consultation on the CRM functioning rules.  The updated version has been submitted for approval to the regulator on November 13th 2020. 


According to the "Preliminary draft Royal Decree establishing the method for calculating the necessary capacity volume and the parameters necessary for the organisation of the auctions under the capacity compensation mechanism ", Elia submitted the "Transmission System Operator's report containing information and proposals for the first CRM auction" to the Minister for Energy, the CREG and the Directorate-General for Energy of the FPS Economy on 13 November 2020.

In the framework of the above report, Elia has requested external consultant Fichtner to perform a study on the Cost of Capacity.  Following the   Public consultation in May 2020, a peer review on some specific items related to the calibration of the intermediate price cap was executed by external consultant Afry.

At the end of 2020, Elia organised a public consultation on the CRM capacity contract.  The updated version has been submitted for approval to the regulator on February 5th, 2021.

Use cases

The different Use Cases as discussed during the TF CRM Implementation meetings in period May-August 2020 have been updated to be in line with the proposed CRM functioning rules.


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