The latest version of the ACER market monitoring report states that while the electricity wholesale markets continue to integrate across the EU, some significant challenges remain. The upcoming edition of the report will confirm that observation. In particular, the available cross border capacity remains insufficient, and this is partly due to important levels of unscheduled flows (UFs).

What are the unscheduled flows? Why are they relevant?

Discrepancies exist between the physical paths followed by power flows at a given moment in time and the paths anticipated from transactions triggering such flows. These discrepancies take the form of various “distortive” flows in the system, called unscheduled flows.

Transmission System Operators (TSOs) must anticipate the impact of unscheduled flows to ensure the integrity of the system. In doing so, they reduce the amount of capacity available for trade by the amount necessary to cope with unscheduled flows. As a consequence, unscheduled flows cause social welfare losses and hamper market integration.

What is ACER’s position?

ACER believes that improving the capacity calculation methodologies and the bidding zone configurations will mitigate the impact of unscheduled flows in the short term. In the longer term, loop flows will be alleviated by investments in the transmission network.

ACER has been monitoring the evolution of unscheduled flows in Europe since 2012. Specifically, ACER monitors unscheduled flows as the sum of unscheduled allocated flows and loop flows. Unscheduled allocated flows stem from insufficient coordination in capacity calculation and allocation processes. Loop flows within a bidding zone result from electricity exchanges inside other bidding zones [1].

What are the main findings?

In 2020, total unscheduled flows amounted to 111 TWh, which represents an overall increase of 2% compared to 2019. In particular, in the Core (excluding CWE) [2] region, unscheduled flows increased by almost 8% compared to 2019. Overall, this region had the larger share of UFs, more than 46% of all UFs in Europe. In the Core (CWE) region, unscheduled flows decreased by more than 5% year-on-year.

Main average oriented unscheduled flows in Continental Europe - 2015 to 2020

Source: ACER calculations based on ENTSO-E and Vulcanus data. 

Note: The arrow is red when unscheduled flows are in the same direction as the physical flow, and yellow when they are opposite to physical flows. The width of the arrows is proportionate to the flows. For each year, the specific value of each flow in MW is detailed in the corresponding MMR edition.

The animation shows the prevailing direction of unscheduled flows from 2015 to 2020. An overall pattern through the years consists of two major loops, from Germany to Switzerland to the south west, and to Poland to the east.

Another significant pattern can be observed from the north to the south of Germany, via the Netherlands, Belgium and France. The animation shows that this pattern changed over the last two years. In particular, since 2019, the overall shift from coal to gas led to reduce the amount of electricity imported from Germany to the Netherlands while the amount of electricity exports from the Netherlands increased. This caused the level of unscheduled flows to decrease in the area.

For a complete analysis of the evolution of unscheduled flows in 2020, consult our publication.

The next edition of the ACER Market Monitoring Report (2020) will be published in November 2021.

[1] The definitions of the flows and the methodology for the calculations underpinning results in this Annex are provided in the methodological paper on UFs.

[2] The Core region involves 13 Member States of Central Europe; CWE stands for Central-West Europe.

The National Regulatory Authorities of the Core region asked the EU Agency for the Cooperation of Energy Regulators (ACER) to decide on the long-term capacity calculation methodology (LT CCM) for the region.

To take an informed decision, ACER is inviting all interested parties to submit their comments by 31 July 2021.​

The Core region comprises of 13 countries: Austria, Belgium, Czech Republic, Croatia, France, Germany, Hungary, Luxemburg, the Netherlands, Poland, Romania, Slovakia and Slovenia.

Find out more about the Public Consultation.

What are the benefits?

Long‐term cross border capacity calculation promotes effective long‐term cross‐zonal trade. By calculating reliable capacities and making them available to market participants at an early stage, long-term capacity calculation allows for long‐term planning and provides hedging opportunities.

The long-term capacity calculation methodology for the Core region shall cover yearly and monthly capacity calculation processes, by applying the flow-based approach.

How does ACER contribute?

ACER’s decision will contribute to the effectiveness and integration of the Core electricity markets by establishing the common rules for calculating the long-term cross-zonal capacity at regional level.

Among the next steps:

ACER expects to reach its decision by 3rd November 2021.

Would you like to learn more about the topic? Join the ACER public workshop on 9th July (10:00 – 11:15 am).

The EU Agency for the Cooperation of Energy Regulators (ACER) has received on 25th June 2021 transmission system operators' (TSOs) proposal to amend the harmonised allocation rules for long-term transmission rights.

ACER will reach a decision on the proposal by 22 December 2021.

To take an informed decision, ACER will collect inputs during the course of the decision making process by consulting with market participants, TSOs and regulatory authorities.

ACER will run a six-week public consultation, from 19 July to 30 August 2021.

What are the benefits of having harmonised allocation rules across Europe?

The harmonised allocation rules ensure a transparent and non-discriminatory capacity allocation of long-term transmission rights to all market participants by, among the others:

• harmonising definitions,
• establishing the contractual framework between the single allocation platform and market participants,
• harmonising the use-it-or-sell-it provisions,
• describing the types of long-term transmission rights, the nomination rules and the forward capacity allocation process,
• harmonising financial requirements and settlement.

How does ACER contribute?

ACER ensures the decision on all-TSOs’ proposal is in line with the objectives of the FCA Regulation and fulfils all the legal obligations set out by its Article 51. 

The EU Agency for the Cooperation of Energy Regulators (ACER) has withdrawn its decision of 29 June  2021 defining the system operation regions (SORs), which replaced its decision of 6 April 2020, by which ACER had amended and approved ENTSO-E’s proposal of 6 January 2020 for the definition of SORs.

The latest decision on the definition of SORs is currently subject to an appeal before the ACER Board of Appeal.

The withdrawal of the decision follows the finding by ACER that the principles of good administration (access to the file) were not sufficiently respected during the administrative procedure.

In the reopened proceedings for a new decision, ACER intends to focus on the part of the SOR definition subject to appeal, namely including the South-West Europe (SWE) Capacity Calculation Region (CCR) in the Central Europe SOR and not defining a separate SWE SOR.

The definition of the SORs represents the first step towards the establishment of regional coordination centres, which will ensure an enhanced institutional framework for a higher level of coordination between transmission system operators at regional level, as well as to enhanced system security and market efficiency.

Decision of 19 October 2021 (No 13/2021).

Decision of 29 June 2021 (No 08/2021).

Decision of 6 April 2020 (No 10/2020).

To access the Annexes go to individual decisions.

The EU Agency for the Cooperation of Energy Regulators (ACER) launches today a call for a new consultative expert group on demand side flexibility. The group will advise the Agency on topics related to the Regulation on the internal market for electricity and specifically on demand side flexibility. 

The scope of the Expert Group​

The group will focus on providing advice on demand side flexibility subjects, including rules on aggregation, energy storage and other provisions. In providing advice, experts can explore various topics such as product(s) provided by distributed energy resources to Transmission System Operators and/or Distribution System Operators, investigating the coordination options between them, as well as distributed energy resources’ access to wholesale markets.

The group may also be called on to provide advice for amendments to existing network codes and guidelines, as well as for developing new framework guidelines, or to submit opinions on any other issue related to ACER’s tasks in the demand side flexibility domain.

Would you like to find out more?​

More information on the application process, the Terms of Reference and Rules of Procedure can be found in the Open Letter​.

Apply by Monday 26th July 2021.

The European Union Agency for the Cooperation of Energy Regulators (ACER) adopted a Decision on the amendments to the pan-European methodology for coordinated security analysis.

In December 2020, ENTSO-E, on behalf of all TSOs, submitted amendments to the existing coordinated security analysis methodology (CSAM). These amendments concerned the inclusion of remedial actions in individual grid models, the coordination and cost sharing of cross-border relevant network elements, as well as of cross-border remedial actions in overlapping zones (Inter-CCR).

Following close cooperation and consultation with TSOs and NRAs ahead of its adoption, ACER’s Decision revised and approved the amendments proposed by TSOs and set out the amended CSAM, pursuant to Article 75 of the SO Regulation.

Access the Decision.

With the adoption of its Greening Action Plan 2021-2022, ACER pledges to reduce its own carbon footprint as an organisation.

ACER’s desire to become greener and more digital as an organisation is not surprising for an EU Agency that plays such a pivotal role in the delivery of Europe’s ambition to be climate neutral by 2050.

Decarbonising the energy sector is a core pillar of the European Green Deal. Europe’s decarbonisation goals relies on integrated European energy markets. This lies at the heart of ACER’s work. Safe and sustainable energy is in turn a key enabler of a competitive and climate-neutral EU economy.

What’s in the ACER Greening Action Plan 2021-2022?

ACER has adopted its first Greening Action Plan identifying 17 concrete actions that aim to reduce the Agency’s carbon footprint in the course of 2021 and 2022, with a strong cross-departmental effort.

This commitment shows ACER’s readiness to implement concrete greening actions, and to support the efforts of its staff and members embracing innovation and sustainable ways of working.

ACER actions fall into six thematic action domains, inspired by the European Commission’s Feasibility and Scoping Study for the Commission to Become Climate Neutral by 2030:

• Design sustainable buildings and working space;
• Optimise energy consumption and systems for buildings;
• Reconsider air travel and promote sustainable travel modes;
• Reduce commuting emissions for transport and mobility;
• Reduce GreenHouse Gas (GHG) emissions from purchase and consumption;
• Manage and communicate for other sources of emissions.

The Agency was invited by its Administrative Board to prepare its first Greening Action Plan for 2021-2022. ACER’s Greening Action Plan details the current state of play as well as the planned actions of the Agency factoring in the available resources.

Read the ACER Greening Action Plan (2021-2022).

Find out more on how ACER contributes to the European Green Deal.