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COBRA Project

The COBRA Project focuses on developing a harmonized algorithm for the CZCAOF for the market-based allocation process

The TSOs of Austria, Denmark, Estonia, Finland, Germany, Latvia, Lithuania, the Netherlands, Norway, and Sweden joined efforts to develop the market-based Cross-Zonal-Capacity Allocation Function (MB CZCAOF) according to the Harmonized Cross-Zonal-Capacity Allocation Method (HCZCAM) which will be used by applications of the market-based allocation process according to Art. 41 EB Regulation. The named TSOs founded the COBRA project, which stands for “Common Optimization of Balancing Reserves and CZC Allocation”.

PICASSO implementation project (as of October 2024)
Members of COBRA Project (as of October 2024)

Main Aim of the Cooperation

COBRA focuses on developing a harmonized algorithm for the CZCAOF for the market-based allocation process. The harmonized algorithm shall be used by existing and future platforms for the exchange of balancing capacity and sharing of reserves for aFRR and mFRR standard products and both directions (FRR+ and FRR-) by means of allocation of CZC. The platforms which use the algorithm shall be built by regional applications and are not part of the scope of COBRA.

Basic Principles of the Algorithm

The algorithm optimizes the cross-zonal procurement of balancing capacity and allocates cross-zonal-capacity (CZC) to the exchange of balancing capacity or sharing of reserves, taking into account the forecast value of CZC for the day-ahead market. The CZC allocation process is based on a comparison of actual market value of CZC for the exchange of balancing capacity or sharing of reserves and the forecasted market value of CZC for the exchange of energy.

Building the platforms and forecasting day-ahead bid areas are out of scope.

Contacts

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