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.

On 31 March 2022, the EU Agency for the Cooperation of Energy Regulators (ACER) received the proposals submitted by all Transmission System Operators (TSOs) amending the implementation frameworks for the European balancing platforms for the automatic and manual frequency restoration reserve (aFRR, mFRR) and the imbalance netting. The amendment proposals detail the designation of entities performing the relevant functions of these platforms. The proposal on the implementation framework of the mFRR platform also includes technical amendments.

How does ACER contribute?

ACER ensures that the amendments proposed by all-TSOs are in line with the objectives of the Electricity Balancing Regulation and fulfil the legal obligations.  ACER also ensures that the different implementation frameworks and the set-up of the European balancing platforms are consistent.

To take an informed decision, ACER will run a public consultation from 16 May until 12 June 2022. ACER will also organise a public workshop on 31 May.

ACER will reach a decision by 30 September 2022.

Access the Public Notice.

What is the benefit?

The implementation frameworks for the European balancing platforms provide the rules for the efficient cross-border exchange of balancing energy from frequency restoration reserves with automatic activation (aFRR) and manual activation (mFRR) and for the imbalance netting.

The EU Agency for the Cooperation of Energy Regulators (ACER) and its National Regulatory Authorities (NRAs) publish today a practical note on how to monitor the capacity available for cross-zonal electricity trade in a harmonised way, in view of the minimum 70% target.

What is the minimum 70% target?

The Clean Energy Package has set a binding minimum 70% target for electricity interconnector capacity to be available for cross-zonal trading (the “minimum 70% target”).

It applies since 1 January 2020 and requires Transmission System Operators (TSOs) to offer 70% of their capacity available for cross-zonal trading. Member States may adopt transitory measures to reach the target gradually by the end of 2025.

Maximising cross-zonal trading opportunities is key to ensure an efficient internal electricity market.

What is the purpose of this note?

ACER and the NRAs jointly developed a common approach to monitor the margin available for cross-zonal trade. The note aims to:

• align as much as possible the principles used to monitor cross-zonal capacity across the EU,

• provide more transparency to market participants on how NRAs will assess compliance with the minimum 70% target. The note also details the list of deviations from the common approach in specific Member States.

Read more on the practical note.

Access the past editions of ACER’s reports monitoring the 70% minimum target.

The EU Agency for the Cooperation of Energy Regulators (ACER) adopted a Decision defining the System Operation Regions (SORs). This Decision is part of the implementation of the Regulation on the internal market for electricity and the Clean Energy Package.

Why is the definition of System Operation Regions (SORs) relevant?

The definition of the System Operation Regions (SORs) represents the first step towards the establishment of Regional Coordination Centres (RCCs). RCCs will ensure an enhanced institutional framework for a higher level of coordination between Transmission System Operators (TSOs) at regional level, as well as reinforce system security and market efficiency.

The decision published today replaces ACER Decision No 10/2020, by which ACER had amended and approved the European Network of Transmission System Operators for Electricity (ENTSO-E)’s proposal of 6 January 2020.

With this Decision, ACER added further reasoning to its amendments and revised the definition of SORs, taking into consideration the impact of UK’s withdrawal from the EU. ACER also decided to maintain the South-West Europe as a separate SOR, as proposed by ENTSO-E.  

Access ACER's Decision 05/2022.

The EU Agency for the Cooperation of Energy Regulators (ACER) launches today a public consultation on how to address the insufficient risk hedging opportunities on the bidding zone borders between Finland and Sweden. In its upcoming decision, ACER can request the relevant Transmission System Operators either to issue long-term transmission rights or to ensure the availability of other long-term cross-zonal hedging products that support the functioning of the wholesale electricity markets.

All interested parties are invited to share their views by 3 May 2022, 23:59 hrs (CET).

Why is this important?

An assessment performed by the National Regulatory Authorities (NRAs) indicated insufficient hedging opportunities in the Finnish bidding zone. Contributions to this public consultation will help ACER in taking an informed decision on how to improve the cross-zonal hedging opportunities on the bidding zone borders between Finland and Sweden for the benefit of market participants.

ACER’s decision will promote long-term cross-zonal trade by improving the availability of long-term cross-zonal risk hedging opportunities.

Access the Public Consultation.