RTE and Terna announce preliminary Y+1 and Y+2 auctions for FR-IT yearly Long-Term Transmission Rights (Business Years 2027-2028)

JAO published a communication on behalf of RTE and Terna announcing concrete preliminary auction schedules for yearly Long-Term Transmission Rights (LTTRs) on the FR-IT border: a Y+1 auction (29/09/2026-06/10/2026) allocating 200MW FR>IT and 100MW IT>FR for Business Year 2027, and a Y+2 auction (09/12/2026-16/12/2026) allocating 50MW FR>IT and 50MW IT>FR for Business Year 2028, following a positive public consultation outcome on the Y+2 mechanism. Both auctions offer Financial Transmission Rights - Options as base products without reduction periods.

These auctions provide market participants with hedging instruments against FR-IT cross-border price differences over multi-year horizons, supporting forward risk management and price convergence signals on a historically congested interconnector. The introduction of a Y+2 horizon (following consultation) extends the forward hedging curve available to traders and utilities operating across this border.

This event operationalizes an expanded forward capacity allocation framework on the FR-IT border by adding a Y+2 auction horizon alongside the existing Y+1 mechanism, following a consultation with market participants. The relatively small volumes (50-200MW) suggest these are incremental or trial allocations rather than full capacity releases, potentially reflecting conservative TSO risk management or phased rollout of the extended horizon. The use of FTR-Options base products without reduction periods indicates a relatively simple product design, avoiding the complexity of curtailment-sharing mechanisms seen on some other borders. The coordination via JAO as the single allocation platform reinforces harmonization within the Core CCR forward capacity allocation framework under the FCA Guideline.

EU Forward Capacity Allocation Guideline (FCA GL); JAO/TSO auction rules for the FR-IT border

Y+1 preliminary auction for Business Year 2027 opens · 29 Sept 2026

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