JAO Updates LTFBA Simulation Platform with Optimized Allocation Algorithm Ahead of Go-Live

JAO published an update (02/11/2026) to the Long-Term Flow-Based Allocation (LTFBA) Simulation Platform, deploying the latest version of the LTFBA Allocation Algorithm. The update optimizes algorithm parameters to improve calculation accuracy while explicitly retaining the existing allocation methodology and overall functionality. The updated simulation environment is now available for market participants to familiarize themselves with ahead of production go-live.

The LTFBA Allocation Algorithm underpins long-term flow-based capacity allocation for annual and monthly auctions across Core and Nordic borders (with FTR options on most Core borders and PTR retained for HR-SI). Accuracy improvements to the algorithm directly affect how accepted volumes and auction prices are calculated during clearing, making pre-go-live simulation testing a critical readiness step for TSOs and market participants who must validate their bidding strategies and system integrations against the production-equivalent logic.

This event sits at the tooling/implementation layer of the broader LTFBA market-design transition from ATC-based to flow-based long-term capacity allocation. While JAO frames the change as methodology-neutral (parameter tuning for accuracy, not a redesign), any adjustment to the optimization algorithm that determines accepted volumes and clearing prices under flow-based constraints carries latent price-formation and cross-border capacity allocation implications once mirrored in production. The explicit caveat that simulation results may differ from production outcomes post-go-live signals residual calibration risk. Market participants relying on the Simulation Platform for strategy validation should treat current simulation outputs as indicative only and monitor for further algorithm iterations before the final go-live, particularly given the broader LTFBA FAQ context referencing collateral bid-price-cap mechanics, XML/API continuity, and auction timing that are all dependent on correct algorithm behavior.

EU Harmonised Allocation Rules (HAR)

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