Successful first auction of the Belgian Capacity Remuneration Mechanism enabled by Artelys market clearing engine

2 December 2021

— A Capacity Remuneration Mechanism (CRM) was recently introduced in Belgium by Elia, the country’s Transmission System Operator, in accordance with the Belgium ‘Electricity Act’.
A market-based capacity remuneration mechanism

The CRM is intended to foster investment in new capacities in order to ensure power system security of supply in the long term, especially since Belgium is considering to phase out its nuclear power plants and to increase the share of renewables in the grid in the electricity mix.

Beginning of October 2021, the first CRM auction was organized to select capacity offers for delivery period 2025-2026: a (priced) demand curve was set by Royal Decree, and prequalified capacity holders were able to submit bids to the market (for existing or new capacity).

Artelys auction clearing algorithm implementation

Artelys was in charge of specifying and implementing the auction clearing algorithm for the Belgian CRM. The auction algorithm selects the optimal combination of offers, in order to meet system adequacy at the least cost. The algorithm takes into account some specific requirements of the CRM like indivisible offers, the presence of exclusive/linking bids family, and power grid constraints. A strong emphasis was placed on returning the unique best solution of the CRM (many tie-breaker rules were implemented to rank solutions having the same cost). The auction’s results are available on Elia website.

For additional information on CRM:

If you want to know more about Artelys energy market clearing, you can contact us or visit the dedicated web page.

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