Information on MBIs and capacity buy-back system
In 2020, the Federal Network Agency approved an oversubscription and capacity buy-back system developed by the gas transmission system operators (TSOs) for additional capacities in the Germany-wide market area Trading Hub Europe (BK7-19/037 – "KAP+").
The merger of the GASPOOL and NetConnect Germany gas market areas with effect from 1 October 2021 to form the new Germany-wide market area Trading Hub Europe will significantly reduce the firm, freely allocable entry capacity in the high CV gas network that can be made available via the existing infrastructure.
The TSOs' joint concept for an oversubscription and buy-back system allows additional capacities over and above the regular technical capacities to be offered to shippers. The concept provides for the use of new market-based instruments (MBIs) and, as a last resort, capacity buy-backs to remove any capacity bottlenecks.
The period in which the TSOs' joint concept for an oversubscription and buy-back system will be applied is limited to a test phase from 1 October 2021, 6:00 am to 1 October 2024, 6:00 am. This test phase will be used to demonstrate the functionality and availability of the MBIs and to gather further empirical data from the system’s actual use.
The additional capacities will be created through the use of the following MBIs:
- VIP wheeling
- Third-party network use
- Spread product
If this is not sufficient, capacity buy-backs will be made as a last resort.
The order in which the MBIs are used is determined by a price-based merit order list. However, the MBIs will only be used after all other cost-free grid- and market-related measures, such as the interruption of interruptible capacities, have been completely exhausted.
A detailed description of the individual MBIs as well as the capacity buy-back system is provided in the THE download center.
The publications relating to the MBIs and the capacity buy-back system can be found on the following pages: