23.11.2021

ACER to decide on the European resource adequacy assessment for 2021

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Electricity wholesale markets, European Union, methodological study

ACER to decide on the European resource adequacy assessment for 2021

What is it about?

On 16 November 2021, the EU Agency for the Cooperation of Energy Regulators (ACER) received a proposal from the European Network of Transmission System Operators for Electricity (ENTSO-E) for the first pan-European resource adequacy assessment (ERAA 2021). The purpose of the assessment is to monitor the risks to security of electricity supply and identify adequacy concerns.

​​​Following the approval of the ERAA methodology in October 2020, ENTSO-E needs to carry out an annual ERAA to assess whether the EU has sufficient electricity resources to meet its future demand. ERAA describes the expected level of security of supply for a ten-year horizon.

Member States set their own electricity reliability standards based on the value of lost load and the cost of new entry for generation or demand response. The reliability standard indicates the necessary level of security of electricity supply for a given Member State.

By comparing these results, ERAA aims to identify potential resource adequacy concerns in the EU and provide an objective basis for assessing the need for additional national measures ensuring security of electricity supply such as the introduction of temporary capacity mechanisms.

To date, ENTSO-E performed the European Mid-term Adequacy Forecast (MAF) with the same ten-year time horizon. Mandated by the Clean Energy Package legislation and based on ACER-approved methodologies, ERAA replaces the MAF and will be key in improving the monitoring of security of electricity supply in Europe.

In order to inform its assessment, ACER invites interested third parties to submit their observations by 7 December 2021 to ACER-ELE-2021-011(at)acer.europa.eu.

The deadline for ACER to reach a decision on ERAA 2021 is 17 February 2022.​

Access the related ACER public notice