National Resource Adequacy Assessments

National Resource Adequacy Assessments

What is it?

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Worker electricity pylon

The European Resource Adequacy Assessment (ERAA) identifies potential concerns about electricity resource adequacy across the EU and provides an objective framework for assessing the need for additional national measures to ensure security of electricity supply. ERAA is carried out on an annual basis by the European Network of Transmission System Operators for Electricity (ENTSO-E) and reviewed by ACER. In May 2024, ACER approved ERAA for the first time.

Member States may choose to complement this European analysis by carrying out their own National Resource Adequacy Assessment (NRAA). While national assessments follow the ERAA methodology, they may capture new developments or national specificities that may have not been sufficiently reflected in the latest ERAA.

National Resource Adequacy Assessments

What is the role of ACER?

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Capacity Mechanisms Explained

When a national assessment identifies adequacy concerns that are not identified in ERAA and the Member State informs ACER, ACER must issue an opinion on the differences between the NRAA and ERAA.

In some cases, ACER’s Opinion can play a role in assessing the need for introducing a capacity mechanism – which offers remuneration to capacity resources to close the forecasted adequacy gap. The assessment is done by the European Commission, following State Aid rules. The process includes:

  • identifying the necessity for the State aid measure;

  • drafting a market reform plan;

  • designing the eventual State aid measure.

National Resource Adequacy Assessments

What does ACER expect in an NRAA?

National assessments must follow the ERAA methodology. At the same time, they may introduce changes in terms of, for example:

  • new information as it becomes available since the latest ERAA;

  • national specificities that are not reflected in ERAA.

These updates must be applied consistently throughout the modelling process to ensure an accurate evaluation of investment decisions and adequacy outcomes, as outlined in ACER’s previous decisions on ERAA

National Resource Adequacy Assessments

ACER Latest Opinion

In September 2024, ACER released its Opinion on the Estonian NRAA, marking its first Opinion on a national assessment. While the Estonian NRAA includes elements that represent a positive benchmark, ACER highlighted the need for greater consistency and clarity.

NATIONAL ASSESSMENT ACER OPINION
Estonia ACER Opinion 04/2024