Task Force CRM
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 version – French 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.
-
Documents
-
Use Cases
-
Public Consultations
-
Demo
-
Additional documentation
Documents
2019
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 drafted design notes which were publicly consulted upon in September/October 2019.
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.
The updated design proposals have been transformed into the two main deliverables for which Elia needs to make a proposal:
-
Draft proposal for a Royal Decree setting out the methodology for calculating capacity and parameters for auctions under the capacity remuneration mechanism (version 22.11.2019) (in French and Dutch)PDF - 1.3 MB
-
Final draft proposal for a Royal Decree setting out the methodology for calculating capacity and parameters for auctions under the capacity remuneration mechanism (version 18.12.2019) (in French and Dutch) - Track ChangesPDF - 1.75 MB
-
Final draft proposal for a Royal Decree setting out the methodology for calculating capacity and parameters for auctions under the capacity remuneration mechanism (version 18.12.2019) (in French and Dutch) - Clean version.PDF - 1.66 MB
-
Draft proposal of a set of Market Rules for the capacity remuneration mechanism (version 25.11.2019)PDF - 1.76 MB
2020
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.
Given the multiple changes in the “Prequalification” and “Secondary market” design notes, only clean versions without track changes of those documents are available.
In the course of 2020, Elia worked on an elaborated version of the CRM functioning rules which were discussed with the stakeholders during the TF CRM meetings. 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.
2021
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.
Pursuant to CREG's draft proposal on the parameters used to determine the amount of capacity to be purchased for the T-4 auction in 2021 with a delivery period of 2025-2026 ( Dutch version – French version), Elia is authorised to issue an opinion in accordance with Article 7undecies §5 of the CRM Act.
Following comments received from CREG, Elia updated the CRM Functioning rules in collaboration with the regulator in order to improve the readability and the understanding of the document. The changes made between the version below and the version of November 13th, 2020 were highlighted during the TF CRM meeting of April 1st 2021.
Following article 7 undecies, paragraph 12 of the Electricity Act, Elia should publish the CRM functioning rules established by CREG on its website by May 15th at the latest.
On 1 June 2021, Elia, prepared, after having aligned with CREG, a new version of the CRM capacity contract with a view to resubmitting it for approval. In the interest of the transparency of this process, Elia also publishes a "compared" version in relation to the version submitted on 5 February 2021.
After further alignment with CREG, a new version of the CRM capacity contract has been prepared on 24 June 2021 and has been submitted for approval.
2020
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 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.
Availability Monitoring and Testing
2021
As stated during the TF CRM Implementation of March 2, 2021 , Elia adapted the use cases published in 2020 in order to facilitate the understanding of the proposed CRM Functioning Rules and the CRM IT Interface. The following documents focus only on the Prequalification and the Auction Processes (Elia added two new use cases to the list published in 2020):-
Use case 1: Demand Side Response (Prequalification & Auction Processes)PDF - 3.03 MB
-
Use case 2: Aggregation (Prequalification & Auction Processes)PDF - 3.16 MB
-
Use case 3: Unproven Capacity (Prequalification & Auction Processes)PDF - 2.41 MB
-
Use case 4: New built (Prequalification & Auction Processes)PDF - 3.67 MB
-
Use case 5: Repowering (Prequalification & Auction Processes)PDF - 2.97 MB
-
Use case 6: Closed Distribution System (Prequalification Process)PDF - 2.19 MB
-
Use case 7: Fast Track (Prequalification Process)PDF - 1.36 MB
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 version – French version). Links towards these consultations are provided below :
2019
- Elia - Formal public consultation on the CRM design notes (Part I) [13.09.2019-11.10.2019]
- CREG – Public Consultation on Investment Thresholds and Eligibility Criteria [01.10.2019 – 21.10.2019] (Dutch version – French version)
- Elia - Formal public consultation on the CRM design notes (Part II) [02.10.2019-30.10.2019]
- CREG – Public consultation on the parameters determining the amount of capacity procured in the capacity mechanism [22.11.2019 – 06.12.2019] (Dutch version – French version)
2020
- CREG - Public consultation on the draft proposal on the parameters for determining the amount of capacity purchased under the capacity mechanism [13.03.2020 – 20.03.2020] (Dutch version – French version)
- FPS Economy - Public consultation on the methodology defining the parameters for determining the amount of capacity purchased under the capacity mechanism [23.03.2020 – 27.03.2020] (Dutch version – French version)
- Elia - Public consultation on the scenarios, sensitivities and data for the CRM parameter calculation for the Y-4 Auction for Delivery Period 2025-2026 related to the CRM [05.05.2020 – 05.06.2020]
- CREG - Public consultation on draft proposal 2086 on Gross Cost of New Entrant and Correction Factor X [01.07.2020-13.07.2020] (Dutch version – French version)
- Elia – Formal public consultation CRM functioning rules [28.08.2020 – 25.09.2020]
- CREG - Draft decision on the guidelines specifying the conditions for the eligible investment costs [30.10.2020 – 20.11.2020] (Dutch version – French version)
- CREG - Complementary proposal to proposal (C)1907 for a Royal Decree laying down the investment thresholds and the eligibility criteria for investment costs with a view to classifying capacities in capacity categories [30.10.2020 – 20.11.2020] (Dutch version – French version)
- Elia - Formal public consultation on the CRM Capacity Contract [20.11.2020 – 18.12.2020]
- CREG - Public consultation on the proposed functioning rules of the capacity remuneration mechanism, as submitted for approval to the CREG by Elia Transmission Belgium [27.11.2020 – 08.01.2021] (Dutch version – French version)
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)
- CREG – Consultation note outlining changes made or to be made to the Proposal for the functioning rules of the capacity remuneration mechanism drafted by Elia Transmission Belgium SA [30.04.2021 – 07.05.2021] ( Dutch version – French version )
- Elia -Public consultation on the scenarios, sensitivities and data for the CRM parameter calculation for the Y-4 Auction for Delivery Period 2026-2027 [20.05.2021 – 20.06.2021]
- FPS Economy – Public consultation regarding a modification of the methodology to obtain an individual derogation of the intermediate price cap [27.05.2021 – 03.06.2021[ (Dutch version – French version)
- FPS Economy – Public consultation on specific values related to the individual derogation of the intermediate price cap [11.06.2021 – 25.06.2021] (Dutch version – French version)
- CREG – Public consultation on the standard capacity contract proposal submitted by Elia Transmission Belgium [25.06.2021 - 06.07.2021] (Dutch version – French version)
- CREG – Public consultation on the project proposal 2267 regarding the gross cost of a new entrant and the correction factor X for the Y-4 Auction for Delivery Period 2026-2027 [30.07.2021 - 31.08.2021] (Dutch version – French version)
- Elia & FPS Economy – Joined public consultation on the application of the methodology for obtaining an individual derogation from the IPC and on the determination of the missing money in the context of the IPC and derogation from the IPC [20.09.21 – 08.10.21]
- CREG – Public consultation on draft proposal of royal decree modifying the Royal Decree published on April 28th 2021 setting the parameters with which to compute the foreseeable capacity volume, including the computation methods, and the remaining parameters required for the set-up of the auctions, as well as the methodology and criteria for the granting of an individual derogation regarding the application of one or multiple intermediary price caps in the context of the capacity remuneration mechanism [20.09.21 – 08.10.21] (Dutch version – French version)
CRM Demo
Elia provides a demo environment of the IT CRM interface to the CRM candidates to facilitate the preparation of the CRM operational processes. The demo focuses on two key processes: the prequalification file submission phase and the bid submission phase of an auction. Elia reminds that these two processes are part of a whole sequence, described in the CRM Functioning Rules, which a CRM candidate needs to follow to participate successfully to the CRM auction .Demo Application Form
To get access to the CRM demo environments, the CRM candidate first has to complete the demo application form. Elia will approve the application form and each user created during the application phase receives a user ID and password. This user ID and password allow the users to access both the Prequalification Process Platform and Auction platform in the demo environment. A user manual on how to create a demo account is provided below.
Demo Prequalification Process Platform
In the demo Prequalification Process Platform, the CRM candidate gets an overview of the Prequalification file submission Process for a Capacity Market Unit (CMU). Elia provides a dedicated user manual of the demo Prequalification Platform.Demo Auction Platform
The Auction Platform in the demo environment gives the CRM candidate the opportunity to get familiar with the bid submission process of a CRM Auction. The CMU Portfolio configuration process for the demo environment differs from the production environment. A description of the process, including the CRM Auction Demo Portfolio Configuration Form (.xlsx), is available below.Contact
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.
-
Principes régissant la proposition d’adaptation du processus de réalisation du raccordement dans le Règlement Technique Fédéral (in French)PDF - 1.48 MB
-
Principes betreffende het voorstel tot aanpassing van het proces van uitvoering van de aansluiting in het Federaal Technisch Reglement (in Dutch)PDF - 1.45 MB
Position Papers
-
FEBEG - Proposals for the implementation of a capacity remuneration mechanism in Belgium - November 2018PDF - 1.36 MB
-
FEBEG - Pay-back obligation - April 2019PDF - 257.27 KB
-
Dieter Jong - CRM Design Discussion Paper - May 2019PDF - 567.33 KB
-
FEBEG - Investment thresholds and eligibility criteria - July 2019PDF - 498.63 KB
-
Bond Beter Leefmilieu/Greenpeace/IEW - Position paper on a Belgian CRM - July 2019PDF - 189.33 KB
-
COGEN Vlaanderen – Combinatie CRM en WKC - July 2019 (in Dutch)PDF - 326.07 KB
-
ODE – Standpunt over capaciteitvergoedingen voor bevoorradingszekerheid - July 2019 (in Dutch)PDF - 308.08 KB
-
Centrica Business Solutions - Position Paper on the Belgian CRM - September 2019PDF - 575.26 KB
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 :
