On 17 May 2022, the National Regulatory Authorities (NRAs) of the Continental Europe Synchronous Area requested the EU Agency for the Cooperation of Energy Regulators (ACER) an extension of six months to decide on the Transmission System Operators’ (TSOs') proposal on the minimum activation period to be ensured by Frequency Containment Reserve (FCR) providers.

What does frequency containment reserve (FCR) mean?

FCRs (also known as primary control reserves) help maintain the power balance across the EU electricity grid. FCRs are one of the balancing services to level out frequency deviations in the power grid. The FCR is the first response to frequency disturbances (e.g. following a planned/unplanned power plant outage). The minimum activation period must be ensured by the FCR providers. If the frequency deviation persists, the Frequency Restoration Reserves (FRR) subsequently replace the primary control reserve.

What are the next steps?

ACER intends to decide promptly on this request.

Access the Public Notice.

The EU Agency for the Cooperation of Energy Regulators (ACER) has reached a decision on the methodology for training and certification of staff working for Regional Coordination Centres (RCCs).

What are the Regional Coordination Centres (RCCs)?

The Regional Coordination Centres (RCCs) are established by the Electricity Regulation and replace the regional security coordinators (RSCs) foreseen by the System Operation Guideline. RCCs cover the tasks carried out by RSCs as well as additional system operation, market related and risk preparedness tasks.

Their tasks include: 

• supporting the consistency assessment of transmission system operators' defence and restoration plans,

• carrying out regional outage planning coordination,

• carrying out post-operation and post-disturbances analysis, and

• training and certification of staff working for RCCs.

In performing their tasks, RCCs contribute to the achievement of the 2030 and 2050 objectives set by the climate and energy policy frameworks (particularly in relation to fostering security of supply and efficiency, as well as increasing the electrification of the energy sector).

Given the entering into operation of RCCs this year, ACER needs to adopt various methodologies related to their different tasks.

What is the methodology about?

In particular, the Regional Coordination Centre training and certification of staff methodology was adopted by ACER following the assessment of the proposal submitted by the European Network of Transmission System Operators for Electricity (ENTSO-E) to ACER in February 2022.

This methodology prescribes the process to prepare and carry out mandatory training and certification programmes for all RCC Operators, including:

• explaining the roles and responsibilities of the RCC training coordinator,

• setting the key aspects to be covered by the RCC training programme, RCC joint training modules and joint training programmes, and

• defining the organisation, structure and requirements for the certification of staff.

How did ACER contribute?

ACER reviewed ENTSO-E’s proposal and ensured the methodology is in line with the objectives of the Electricity Regulation and fulfils its legal obligations.

Access ACER’s Decision 07-2022.

The Swedish regulatory authority (Ei) received an application from the Swedish Transmission System Operator (TSO) Svenska kraftnät (SvK) for a derogation from the minimum capacity available for cross-zonal trade (‘70% requirement’) for multiple electricity interconnections for the year 2022.

Ei decided to reject the part of SvK's derogation request concerning the interconnectors between the bidding zones: Denmark 2 – Sweden 4, Germany & Luxembourg – Sweden 4, Poland – Sweden 4 and Lithuania - Sweden 4, as well as for the internal Swedish bidding zone borders SE3-SE4 and SE2-SE3.

Ei decided that SvK should be granted a derogation for the interconnectors between the bidding zones Finland – Sweden 3 (FI - SE3) and Denmark 1 – Sweden 3 (DK1 - SE3) bidding zones for the year 2022.

The Finnish Energy Regulatory Authority (EV) and the Danish Energy Regulatory Authority (DUR) opposed granting the derogations to SvK.

The question of derogation must therefore, in accordance with Article 16 (9) of the Electricity Market Regulation, be submitted to ACER.

What are the next steps?

ACER invites interested stakeholders to submit their views by 30 June 2022 to the email: ACER-ELE-2022-010(at)acer.europa.eu.

Link to: SvK derogation request (EN)

Link to: Ei decision (SE)

Link to: Ei decision (unofficial English translation)

ACER expects to reach its decision by 27 October 2022.

What role has ACER?

ACER’s decision will provide clarity on the application of the Electricity Regulation with regard to the minimum capacity available for cross-zonal trade based on its Article 16(8) and possible derogations pursuant to its Article 16(9). ACER’s decision will impact the effectiveness and integration of the Nordic electricity markets.

The EU Agency for the Cooperation of Energy Regulators (ACER) launches today a public consultation on the TSOs’ proposals amending the implementation frameworks for the European balancing platforms for the automatic and manual frequency restoration reserve (aFRR, mFRR) and the imbalance netting.

The aim of this consultation is to collect stakeholders’ views on the key areas of the amendments proposed by TSOs; in particular the designation of entities performing the relevant functions of the European balancing platforms and the changes to the technical specifications of the products for the mFRR platform.

All interested parties are invited to share their views by 12 June 2022, 23:59 hrs (CET).

Access the Public Consultation and share your views!

ACER will also hold a public workshop on 31 May 2022, from 14.00 to 15.00 CET, to present the implementation frameworks and its proposals for amending them, as well as to gather further views from stakeholders. Register now!

Following the results of the Locational Marginal Pricing (LMP) analysis carried out by Transmission System Operators (TSOs), the EU Agency for the Cooperation of Energy Regulators (ACER) has initiated the procedure to decide on the TSOs’ proposal of alternative bidding zone configurations.

What is the role of ACER?

In their proposal for a methodology and configurations to be considered for the bidding zone review, TSOs did not include alternative configurations for a large part of Europe.

To better address this topic and further inform its decision making process, ACER envisaged to take two separate decisions. The first decision (ACER Decision 29/2020) included the approval of the bidding zone review methodology and assumptions, and requested TSOs to carry out a LMP analysis.

In the second decision, ACER will decide on the alternative bidding zone configurations to be investigated in the bidding zone review.

What are the benefits?

A better bidding zone configuration, whose borders are based on long-term, structural congestions, can bring several benefits, including increased opportunities for cross-zonal trades, more efficient network investments and cost-efficient integration of new technologies.

What are the next steps?

ACER will adopt this second decision by 20 July 2022.

As a following step, TSOs should start the bidding zone review, expected to last for 12 months.

The EU Agency for the Cooperation of Energy Regulators (ACER) and the Council of European Energy Regulators (CEER) announce a public consultation in preparation for the joint paper on the upcoming revisions to the European Grid Connection Network Codes.

The aim of this consultation is to collect stakeholders’ views on the key areas of amendments of the upcoming revision of the European Grid Connection Network Codes (GC NCs); in particular concerning the revision of the network code on requirements for grid connection of generators and on demand connection. Along with the public consultation, ACER and CEER publish today a consultation paper to share some initial considerations.

The ACER-CEER consultation paper mainly covers the needs for amendments to:

• the technical requirements for electrical charging points and for electric vehicles,

• determination of the significance of power generating modules (based on their size and effect on the overall system),

• the requirements to effectively enable mixed customer sides, active customers and energy communities,

• the implications of significant modernisation, and

• generators’ resilience to weather hazards.

The consultation addresses potential challenges, draws on the alternative policy options and provides recommendations for the amendment process.

To collect inputs on the areas of the revisions to the Grid Connection Network Codes (GCNCs), ACER and CEER open today a public consultation running from Friday 6 May until Friday 10 June 2022.

ACER and CEER will also hold a public workshop on Wednesday 25 May 2022, from 10.00 to 12.00 CET, to present the consultation paper and to gather further views from stakeholders.

What are the next steps?

In the framework of the Grid Connection European Stakeholder Committee, the European Commission proposed that ACER initiates the process of amending the existing GC NCs in September 2022.

The outcome of this public consultation is a joint paper planned for publication by September 2022. ACER intends to launch a full-fledged public consultation on the stakeholders’ amendment proposals to the GC NCs in September 2022.

Read more on the Public Consultation and share your inputs!

Register to the ACER-CEER event.

The EU Agency for the Cooperation of Energy Regulators (ACER) has published today its Final Assessment of the EU Wholesale Electricity Market Design.

What’s in the report?

This ACER Final Report presents an in-depth analysis of:

• energy price levels and drivers

• current wholesale electricity market design

• ways to future-proof the wholesale electricity market

• extreme price shocks and considerations on temporary, targeted measures

• the impact on retail markets and how to protect consumers.

ACER concludes with a set of 13 measures for policy makers’ consideration.

Key Findings

Overall, ACER finds that whilst the current electricity market design is worth keeping, some improvements will prove key for it to deliver on important challenges, including:

• Making short-term electricity markets work better everywhere

• Driving the energy transition through efficient long-term markets

• Increasing the flexibility of the electricity system

• Protecting consumers against excessive volatility whilst addressing inevitable trade-offs

• Tackling non-market barriers and political stumbling blocks

• Preparing for future high energy prices in ‘peace time’; being very prudent towards wholesale market intervention in ‘war time’.

ACER’s 13 measures for consideration by policy makers

ACER’s analysis has put forward a suite of 13 measures for policy makers to future proof the market design, for example to:  

• shield those consumers that need protection the most from price volatility

• stimulate ‘market making’ to improve liquidity in the long-term markets

• speed up electricity market integration, implementing what is already agreed

• better integrate forward markets

• consider prudently the need for market interventions in situations of extreme duress and, if pursued, consider tackling the ‘root causes’.

Access the full Assessment.

Next steps

ACER published its Preliminary Assessment in November 2021. This Final Assessment fulfils the mandate given by the European Commission in October 2021.

ACER will present its Final Assessment at a public webinar on the 5th May.  

The EU Agency for the Cooperation of Energy Regulators (ACER) has reached a decision on the first amendment of the intraday capacity calculation methodology of the Core capacity calculation region (Core ID CCM) in cooperation with the region’s National Regulatory Authorities (NRAs) and Transmission System Operators (TSOs).

The Core region comprises 13 Member States: Austria, Belgium, Czech Republic, Croatia, France, Germany, Hungary, Luxemburg, the Netherlands, Poland, Romania, Slovakia and Slovenia.

ACER amended its original Decision 02-2019 so as to enable the harmonisation of the capacity calculation principles at intraday level with the day-ahead capacity calculation methodology of the Core region.

ACER’s new Decision 06-2022 ensures that the application of the intraday capacity calculation methodology of the Core region is aligned with the expected Core Region day-ahead flow-based market coupling. The latter was expected to go live on 20th April but has once again been postponed.

The decision focuses mainly on the intraday transmission capacities in the transitional implementation period of one year. These are residual capacities after the single day-ahead market coupling (SDAC) process.

How did ACER contribute?

In February 2022, the regulatory authorities of the Core region asked ACER to decide on the intraday capacity calculation methodology.

ACER has carried out assessments and consulted relevant stakeholders to take an informed decision on any needed adjustments.

On this basis, ACER has amended the initial proposal of the 1st amendment of the Core ID CCM provided by the Core TSOs so as to further improve the efficiency, transparency and non-discriminatory principles of the intraday capacity calculation process, as well as to ensure its compatibility with day-ahead markets.

Read more on the ACER’s Decision 06-2022 on Core ID CC methodology and its Annexes.

On Friday 8 April 2022, electricity Transmission System Operators (TSOs) and Nominated Electricity Market Operators (NEMOs) from the Core region announced the postponement of the implementation of the Core flow-based market coupling project. This project is key to realise further benefits of EU electricity market integration; a process made even more important given the significant challenges currently facing European energy markets. The project (which was originally planned for completion in December 2020) has already been delayed twice. It was due to go live on 20 April 2022.

According to ACER’s information, the implementation has been prevented by three TSOs (supported by three NEMOs) expressing several concerns about the risk of insufficient cross-zonal capacities for go-live and the impact this would have on the market functioning. All other TSOs and NEMOs of the Core region, according to ACER’s information, considered that these risks were not significant enough to delay implementation.

The Core region comprises 13 Member States: Austria, Belgium, Czech Republic, Croatia, France, Germany, Hungary, Luxembourg, the Netherlands, Poland, Romania, Slovakia and Slovenia.

ACER acknowledges that a well-functioning electricity market is an important objective and that the risk of low cross-zonal capacities could seriously undermine it. However, ACER notes that

1) TSOs are under an obligation to offer a minimum amount of cross-zonal capacities (the so-called 70% target) and claim so far to comply with this obligation (see for example the ENTSO-E Bidding Zone Configuration Technical Report 2021); and

2) the risk of insufficient cross-zonal capacities cannot be avoided completely, as TSOs have the legally defined rights, during individual validation, to reduce cross-zonal capacity in case of operational security problems.

For these reasons, and based on the information available, ACER considers that the decision by the TSOs and NEMOs to postpone the go-live of the Core flow-based project up until now has not been properly justified.

Given the importance of this project for the EU’s electricity market integration process, ACER invites the national regulatory authorities (NRAs) of the Core region to investigate whether this failure of TSOs to adhere to the implementation deadline for now the third time constitutes a breach of their compliance obligations. ACER urges the TSOs of the Core region to minimise this delay and to implement the flow-based market coupling project as soon as possible.