ACER is establishing an Expert Group to assess flexibility needs in the EU electricity system. We are looking for professionals with expertise in power market modelling, energy markets, energy systems, energy economics, energy policy and energy regulations.

What will be the Expert Group’s focus?

Due to the massive ramp up of renewable energy, the EU’s power system flexibility needs are expected to double by 2030. The recently adopted Electricity Market Design (EMD) Regulation (2024) mandates ACER to conduct a pan-European flexibility needs assessment. The assessment, expected to be published in July 2027, will be based on the methodology currently being developed by the European Network of Transmission System Operators for Electricity (ENTSO-E) and DSO Entity.

Through this assessment, ACER will evaluate how well the EU’s electricity system can adapt to fluctuating demand and generation patterns to cost-effectively integrate increasing shares of variable renewables while ensuring security of supply. It will also evaluate the potential impact of introducing new measures to unlock flexibility on the European electricity markets.

This harmonised assessment will further provide the European Commission and other stakeholders with essential data and insights to inform policy decisions aimed at enhancing the resilience, stability, and efficiency of the EU's electricity market.

The Expert Group will support ACER in the development of a robust analytical tool to complete this assessment.

Experts will provide valuable insights and recommendations on:

• modelling techniques and their implementation;
• solutions to simulate and quantify the flexibility needs of the system; and
• other key topics related to improving system flexibility. 

The group will operate for two years, i.e. until April 2027, with the possibility of extension if further engagement is needed.

How to apply?

Follow the instructions in the Open Letter, ensuring that you fulfil all the criteria. The deadline for applications is 10 February 2025.

Today, ACER releases a new tool to simulate price correlations for electricity forward trading with potential virtual hub prices.

The ACER’s electricity virtual hub price simulator tool shows correlations between prices in any EU electricity bidding zone and various configurations of a virtual hub price. A virtual hub price is currently in use in the Nordic market region (i.e., the Nordic System Price), and could potentially also be introduced for Continental Europe as part of the upcoming revision of the Forward Capacity Allocation (FCA) Regulation by the European Commission. The Commission will assess whether there is a need for regional virtual hubs for forward markets. This ACER virtual price correlation simulators helps inform the debate on this topic.

Why did ACER develop this simulator?

The 2022 energy crisis revealed the high vulnerability to extreme day-ahead electricity prices in the absence of effective hedging, highlighting the importance of well-functioning electricity forward markets.

In 2023, ACER published its policy paper to further develop the EU electricity forward market. The paper identified the need for better allocation of long-term cross-zonal capacities to support forward electricity trading. It proposed shifting away from long-term transmission rights (LTTRs) for individual bidding zone border towards LTTRs between bidding zones and a virtual regional hub. To enable this approach (should the Commission decide to go this route), the revised FCA Regulation would need to establish a methodology that defines virtual hub prices.

What is proxy hedging and why could a virtual hub price be relevant?

Market participants who lack sufficiently liquid forward electricity products for their bidding zone may want to address their hedging needs via a similar but more liquid electricity forward product. The efficiency of using such an alternative forward electricity product (known as ‘proxy hedge’) depends on:

• Liquidity: the proxy product must be actively traded to ensure it can be easily bought and sold.
• Price correlation: the proxy’s price must closely reflect price movements in the bidding zone where the market participant has an open risk position.

Currently, many market participants use the (large and liquid) German forward market as a proxy for their hedging needs. A virtual hub forward electricity product, with better price correlation to EU bidding zones, may offer an efficient alternative for proxy hedging under a future integrated European forward electricity market design.

How can a market participant use ACER’s electricity virtual hub price simulator?

ACER’s virtual hub price correlation simulator is based on real day-ahead prices and enables users to explore different geographical configurations for potential hubs to hedge electricity prices. It shows how the prices of these virtual hubs would have correlated with current EU bidding zones over the past years.

The dashboard also displays the correlations between EU bidding zone prices and the currently used proxy hedging products (such as the German bidding zone price).

Can any initial findings be drawn from the data?

ACER’s virtual hub price correlation simulator provides statistical insights that support the recommendations in ACER’s (2023) policy paper. The data suggests that a well-designed virtual hub price would have stronger correlations with most bidding zone prices than the forward products currently used as proxies for hedging.

What are the next steps?

The European Commission is conducting an impact assessment to identify ways to improve the forward electricity market. Based on this assessment, the FCA Regulation is expected to be revised in 2026.

Today, ACER issues its Recommendation proposing potential improvements to the gas Capacity Allocation Mechanisms Network Code (CAM NC).

The CAM NC harmonises how Transmission System Operators (TSOs) offer and allocate available gas transmission pipeline capacity to network users. The network code, last amended in 2017, needs to be updated to reflect Europe’s decarbonisation goals and the evolving gas market.

The revision process

In 2023, ACER initiated the revision process, as invited by the European Commission. The revision process was informed by new regulatory elements from the hydrogen and gas decarbonisation package, ACER’s initial analysis of the network code's achievements and areas for improvement, and dialogue with stakeholders.

Following the analysis of inputs received during the last consultation (September-October 2024), ACER concluded the revision process by issuing its Recommendation to the European Commission on 20 December 2024.

What are the main recommendations?

• Utilise the current gas system efficiently and strengthen its monitoring by improving transparency on how capacity is maximised, and enhance coordination and consultation among relevant regulatory authorities, TSOs and network users.  
• Enhance transmission capacity that is made available by increasing auction opportunities for existing capacity products and introducing a capacity offer between monthly and daily auctions, thereby contributing to security of supply.
• Allow a quick modification of non-essential auction details to ensure auctions can reflect the evolving market conditions, while maintaining harmonised rules for capacity allocation across all interconnection points.

What are the next steps?

The European Commission can amend the network code following the comitology process. ACER’s Recommendation offers a starting point for that process.

ACER has released its multi-annual 'Single programming document 2025-2027', outlining its strategic goals and priorities for the coming years. The document also includes ACER’s 2025 Annual Work Programme, which focuses on advancing the EU energy market while tackling emerging regulatory challenges.

Which are ACER’s priorities for 2025-27?

ACER's will continue its work on:

• the EU energy market;
• infrastructure and security of supply;
• the integrity and transparency of wholesale energy markets; and
• longer-term regulatory challenges.

The 2025 annual work programme incorporates the new tasks given to ACER by different legislative packages adopted in 2024:

• the Hydrogen and decarbonised gas market package of laws;
• the Methane Emissions Regulation;
• the reforms of the Electricity Market Design; and
• the revisions of the Regulation on Energy Market Integrity and Transparency (REMIT).

Access previous editions.

Today, ACER has submitted to the European Commission its Recommendation to amend the HVDC Network Code, which sets binding rules for connecting high-voltage direct current (HVDC) systems and direct current (DC) connected ‘power park modules’ to the grid. 

Why amend the rules? 

These amendments aim to safeguard future energy system needs in the EU. Substantial growth in generation capacity of isolated offshore Alternating Current (AC) networks (or AC hubs) is expected. 

This ACER Recommendation aims to address the changes in the electricity sector, focusing on the growing role of offshore power park modules, demand facilities, power-to-gas units (e.g., electrolysers for renewable hydrogen), electricity storage, and HVDC systems connecting isolated (AC) networks.  

Key terms explained:  

• Power park modules refer to offshore generators, comprising a single or a set of generating units connected to the offshore AC network (e.g., wind, solar, wave, etc.). 

• AC hubs will connect large-scale (tens of GW) offshore power generation and large-scale industrial demand (electrolysers) along with storage and other demand. 

• Demand refers to system users that are consuming electricity from the network (e.g., power-to-gas units, industrial consumers, etc). 

What is this ACER Recommendation about? 

In December 2023, ACER recommended amending the Network Codes on requirements for grid connection of generators and demand connection. To ensure consistency in grid connection rules and address new system needs (e.g., offshore networks and new system users like storage and demand facilities), ACER initiated the amendment process of the HVDC Regulation. 

ACER proposes: 

• Expanding the Network Code’s scope to include new offshore demand facilities, power-to-gas facilities (mainly electrolysers), offshore electricity storage, and HVDC systems connecting isolated AC networks. 

• Introducing technical requirements for new offshore demand facilities, power-to-gas facilities (mainly electrolysers), and offshore electricity storage to support both interconnected and offshore systems. 

Process and next steps 

This ACER Recommendation is the result of extensive engagement including: 

• Public consultation (June-September 2024).   

• Webinar (June 2024).

ACER reviewed the stakeholders’ feedback and consulted the European Network of Transmission System Operators for Electricity (ENTSO-E) and other stakeholders to finalise the Recommendation.  

The next step is for the European Commission to adopt the Network Code in line with the Electricity Regulation.  

The Comisión Nacional de los Mercados y la Competencia (CNMC) has imposed a €6 million fine on GESTERNOVA S.A. and a €1.5 million fine on AXPO IBERIA for manipulating the Spanish electricity market between 30 September and 30 December 2022.

These penalties come under the REMIT Regulation (EU) No 1227/2011, which prohibits market manipulation and seeks to protect the integrity and transparency of the EU’s wholesale energy markets.

In its decisions, CNMC found that GESTERNOVA S.A. and AXPO IBERIA had breached Article 5 of REMIT by manipulating the continuous intraday market by:

• Giving false or misleading signals regarding the supply of wholesale energy products, through behaviour known as ‘quote stuffing’.
• Issuing (and also withdrawing in AXPO IBERIA’s case) non-genuine orders to be in an advantageous position to execute cross-border sales with France.

CNMC’s investigation revealed that GESTERNOVA S.A. and AXPO IBERIA, in multiple sessions of this period, issued (or also withdrew in AXPO IBERIA’s case) non-genuine sell orders by using algorithmic trading with the goal of monopolising the order book queue for the D+1 product. Their behaviour blocked other market participants’ orders from being accepted in the order queue. Consequently, at the start of the trading session, one or more of GESTERNOVA S.A.’s and AXPO IBERIA's sell orders were prioritised at the top of the order book, ready to be the first matched once additional capacity would become available at the interconnection with France.

CNMC considers the behaviour as “quote stuffing” (defined in 6.1st edition of ACER REMIT Guidance as entering a large number of orders to trade and/or cancellations and/or updates to orders to trade so as to create uncertainty for other participants, slowing down their process, and/or to camouflage one’s own strategy).

ACER welcomes the rigour of CNMC’s enforcement with these third and fourth CNMC market manipulation decisions this year.

Access the GESTERNOVA Decision and AXPO Decision, together with CNMC’s GESTERNOVA press release and AXPO press release (both in Spanish).

See the latest ACER table of REMIT breach sanction decisions adopted by national regulatory authorities.

Check the ACER REMIT Guidance (6.1st edition) for more information on the types of trading practices which could constitute market manipulation under REMIT.

Interested in further information on enforcement decisions under REMIT? Check out ACER’s REMIT Quarterly reports.

Check out ACER latest guidance on REMIT and LNG data reporting, updated in December 2024 to align them with the revised REMIT Regulation.

Today, ACER issues its Opinion on the draft statutory documents proposed by future hydrogen transmission network operators to formally establish the European Network of Network Operators for Hydrogen (ENNOH) as an association under the Belgian law.

As an independent body, ENNOH will be responsible for fostering collaboration among hydrogen transmission network operators across the EU.

What’s the role of ACER?

ACER is mandated to provide an Opinion on ENNOH’s draft statutory documents, which were submitted at the end of August.

ACER conducted a public consultation from 23 September to 21 October 2024, seeking views from organisations representing all stakeholders, in particular hydrogen system users, including customers. All responses received are available on the consultation page.

What is the main conclusion?

ACER welcomes the draft statutory documents received, and suggests how to enhance them to further support the establishment of ENNOH. ACER highlights, however, that a crucial factor for success lies in the timely and committed transposition of certification provisions from the Hydrogen and Decarbonised Gas Market Directive by the Member States. This responsibility, ACER notes, rests with the relevant ministries, not ENNOH or its members.

What are the next steps?

This ACER’s Opinion is addressed to the European Commission, which now has three months to provide its opinion. Should the Commission’s opinion be favourable, future hydrogen transmission network operators will have three months to adopt and publish the statutory documents.

ACER issues its Opinion on the Winter Supply Outlook 2024/25 published by the European Network of Transmission System Operators for Gas (ENTSOG).

ENTSOG’s Winter Supply Outlook 2024/2025 evaluates the resilience of the European gas system by analysing different scenarios involving prolonged disruptions of Russian gas imports. The Outlook focuses also on Europe’s preparedness for winter 2024/2025 and summer 2025, examining its gas system’s capacity to cope with typical and severe winter conditions (including high demand and the consequences of the expiry of Ukraine’s gas transit agreement with Russia by the end of December 2024). It also assesses the potential impact of supply disruption via the TurkStream pipeline (running from Russia to Turkey) and models varying levels of Liquified Natural Gas (LNG) supply to Europe, including high, standard, and low supply scenarios.

Highlights of ENTSOG’s Winter Supply Outlook:

• High gas storage levels: on 1 October 2024, EU gas storage reached 94% of its capacity, thanks to reduced consumption, high initial storage levels, and measures by Member States.

• Monitor withdrawals from gas storage: Early gas withdrawals could deplete storage by the end of the season, increasing the risk of demand curtailment during cold spells.

• Summer storage targets: maintaining 30-40% of storage at the start of the next injection season (March 2025) is crucial to meet the 90% target by the end of summer 2025.

• Reduced reliance on Russian gas: the EU could maintain 40% storage levels at this winter's end without Russian pipeline gas, showing increased independence.

• Mitigating full supply disruptions: in case of a full gas supply disruption, extra supplies mainly from LNG imports and a 15% demand reduction are needed to avoid curtailment and maintain storage levels.

• LNG and Norwegian gas: LNG and Norwegian gas are now primary sources for EU Member States and the Energy Community’s contracting parties.

What is in ACER’s Opinion?

• ACER acknowledges that ENTSOG enlarged the scope of its methodology to include gas supply and storage developments (i.e. strategic reserves based on each Member States’ regulations, Ukrainian storage as a last resort) and to reconsider the role of LNG regasification terminal tanks for short-term storage flexibility. ACER also supports ENTSOG's efforts to model a ‘low LNG supply scenario’ that excludes Russian LNG supplies.

• ACER acknowledges that ENTSOG enlarged the scope of its methodology to include gas supply and storage developments (i.e. strategic reserves based on each Member States’ regulations, Ukrainian storage as a last resort) and to reconsider the role of LNG regasification terminal tanks for short-term storage flexibility. ACER also supports ENTSOG's efforts to model a ‘low LNG supply scenario’ that excludes Russian LNG supplies.

• ACER recommends ENTSOG to consider the following methodological improvements:
  • The inclusion of a qualitative analysis of gas futures prices and summer-winter spreads for better forecasting of potential challenges for market-based filling of gas storages.
  • Clarify the assumptions and methodology used to build the ‘low LNG supply scenario’.
  • Specify capacities added by newly commissioned projects.
  • Compare seasonal demand projections with forecasts from other institutions.

• ACER highlights the importance of a close cooperation between ENTSOG and ENTSO-E to ensure consistent results in their respective seasonal outlooks. In addition, ACER identified several risk factors for the upcoming year:
  • likely stop of Russian gas transit through Ukraine after 2024;
  • unusually cold winter;
  • failure to reduce gas demand;
  • increased demand volatility from gas power plants;
  • rising Asian gas demand;
  • low storage levels at the end of winter;
  • operational incidents in supply routes;
  • rising tensions in the Middle East affecting LNG flows and crude prices.

ACER publishes today an updated edition of its Guidance on REMIT application, reflecting the changes introduced by the revised REMIT Regulation.

ACER regularly produces and updates a non-binding Guidance for National Regulatory Authorities (NRAs), market participants and other relevant stakeholders, to ensure effective coordination and consistency in the application of REMIT. This guidance ensures that REMIT requirements are well explained and uniformly applied, providing clarity and direction to NRAs, market participants and other relevant stakeholders.                          

What are the main updates?

The revised Guidance:

• Updates definitions to align them with the revised REMIT Regulation, including the concepts of market manipulation, wholesale energy products and persons professionally arranging or executing transactions (PPAETs).
• Reflects the expanded scope of REMIT’s application on data reporting: covering new products, electricity balancing markets, coupled markets and algorithmic trading. It also clarifies the extension of REMIT’s market abuse provisions to wholesale energy products that also qualify as financial instruments.
• Clarifies the concept and obligations of the PPAETs under Article 15.
• Corrects wording and references to ensure consistency with the revised REMIT Regulation.

This update was delivered after extensive consultation with NRAs, REMIT experts, and members of the Market Surveillance Forum. The European Securities and Markets Authority (ESMA) was also consulted in the process to ensure accuracy.

What are the next steps?

ACER invites NRAs and relevant stakeholders to follow the ACER Guidance while implementing the revised REMIT Regulation. Further revisions are not anticipated until all implementing and delegated acts are in place.