PC_2023_E_08 - Public Consultation on the ACER electricity cross-border capacity report
EU rules require grid operators to make a 70% minimum amount of capacity on interconnectors available for electricity trading with neighbours by the end of 2025. ACER reports on how Member States are progressing on reaching the 70% margin available for cross-zonal trade in the EU electricity markets in 2022.
On 21 July 2023, ACER published a report on cross-zonal capacity in EU electricity markets in 2022 (as background, see our news alert), which:
- highlights the need for maximizing cross-zonal trading to reach the EU’s clean energy goals;
- evaluates progress towards achieving the 70% target by the end of 2025;
- analyses the main barriers to cross-zonal trading and outlines what Member States and Transmission System Operators (TSOs) can do to lift them; and
- illustrates the impact on welfare and on price spikes of offering low cross-zonal capacity levels in day-ahead electricity markets.
Why is reaching the minimum 70% target important?
- Delivering on the agreed minimum 70% target of interconnection capacity is crucial to achieving the ambitious political objectives set for renewable generation.
- Reaching the 70% target will:
- Contribute to efficient cross-border trade;
- Ensure security of supply;
- Mitigate price volatility; and
- Provide key flexibility to the market.
- Building new lines is difficult and environmentally challenging: The 70% target allows for a more efficient use of existing lines.
- The 70% target will become increasingly difficult and costly to reach. Progress towards the 70% target is unlikely to happen without tough trade-offs.
Why we are consulting
The objective of this consultation was to gather views from stakeholders regarding the findings of ACER’s report on Cross-zonal capacities and the 70% margin available for cross-zonal electricity trade (MACZT) in 2022. Based on the findings of the report and the stakeholders’ input gathered, ACER will issue a formal Opinion to the European Commission and European Parliament by the end of 2023.
This consultation was addressed to all interested stakeholders, including market participants, regulatory authorities, nominated electricity market operators, Member State governments, academics, and grid system operators.
Based on its findings and stakeholders’ input, ACER will issue a formal opinion with recommendations to the European Commission and European Parliament by Q1 2024.
- 21 July 2023: ACER publishes its report on cross-border capacity in electricity markets.
- 21 July to 15 September 2023: ACER runs a public consultation on the report.
- 6 September 2023: ACER holds a dedicated workshop on the report’s conclusions.
- Q1 2024: ACER issues a formal opinion with recommendations to policy makers.