The EU Agency for the Cooperation of Energy Regulators (ACER) has reached a decision on the first amendment of the intraday capacity calculation methodology of the Core capacity calculation region (Core ID CCM) in cooperation with the region’s National Regulatory Authorities (NRAs) and Transmission System Operators (TSOs).

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

ACER amended its original Decision 02-2019 so as to enable the harmonisation of the capacity calculation principles at intraday level with the day-ahead capacity calculation methodology of the Core region.

ACER’s new Decision 06-2022 ensures that the application of the intraday capacity calculation methodology of the Core region is aligned with the expected Core Region day-ahead flow-based market coupling. The latter was expected to go live on 20th April but has once again been postponed.

The decision focuses mainly on the intraday transmission capacities in the transitional implementation period of one year. These are residual capacities after the single day-ahead market coupling (SDAC) process.

How did ACER contribute?

In February 2022, the regulatory authorities of the Core region asked ACER to decide on the intraday capacity calculation methodology.

ACER has carried out assessments and consulted relevant stakeholders to take an informed decision on any needed adjustments.

On this basis, ACER has amended the initial proposal of the 1st amendment of the Core ID CCM provided by the Core TSOs so as to further improve the efficiency, transparency and non-discriminatory principles of the intraday capacity calculation process, as well as to ensure its compatibility with day-ahead markets.

Read more on the ACER’s Decision 06-2022 on Core ID CC methodology and its Annexes.

On Friday 8 April 2022, electricity Transmission System Operators (TSOs) and Nominated Electricity Market Operators (NEMOs) from the Core region announced the postponement of the implementation of the Core flow-based market coupling project. This project is key to realise further benefits of EU electricity market integration; a process made even more important given the significant challenges currently facing European energy markets. The project (which was originally planned for completion in December 2020) has already been delayed twice. It was due to go live on 20 April 2022.

According to ACER’s information, the implementation has been prevented by three TSOs (supported by three NEMOs) expressing several concerns about the risk of insufficient cross-zonal capacities for go-live and the impact this would have on the market functioning. All other TSOs and NEMOs of the Core region, according to ACER’s information, considered that these risks were not significant enough to delay implementation.

The Core region comprises 13 Member States: Austria, Belgium, Czech Republic, Croatia, France, Germany, Hungary, Luxembourg, the Netherlands, Poland, Romania, Slovakia and Slovenia.

ACER acknowledges that a well-functioning electricity market is an important objective and that the risk of low cross-zonal capacities could seriously undermine it. However, ACER notes that

1) TSOs are under an obligation to offer a minimum amount of cross-zonal capacities (the so-called 70% target) and claim so far to comply with this obligation (see for example the ENTSO-E Bidding Zone Configuration Technical Report 2021); and

2) the risk of insufficient cross-zonal capacities cannot be avoided completely, as TSOs have the legally defined rights, during individual validation, to reduce cross-zonal capacity in case of operational security problems.

For these reasons, and based on the information available, ACER considers that the decision by the TSOs and NEMOs to postpone the go-live of the Core flow-based project up until now has not been properly justified.

Given the importance of this project for the EU’s electricity market integration process, ACER invites the national regulatory authorities (NRAs) of the Core region to investigate whether this failure of TSOs to adhere to the implementation deadline for now the third time constitutes a breach of their compliance obligations. ACER urges the TSOs of the Core region to minimise this delay and to implement the flow-based market coupling project as soon as possible.

On 31 March 2022, the EU Agency for the Cooperation of Energy Regulators (ACER) received the proposals submitted by all Transmission System Operators (TSOs) amending the implementation frameworks for the European balancing platforms for the automatic and manual frequency restoration reserve (aFRR, mFRR) and the imbalance netting. The amendment proposals detail the designation of entities performing the relevant functions of these platforms. The proposal on the implementation framework of the mFRR platform also includes technical amendments.

How does ACER contribute?

ACER ensures that the amendments proposed by all-TSOs are in line with the objectives of the Electricity Balancing Regulation and fulfil the legal obligations.  ACER also ensures that the different implementation frameworks and the set-up of the European balancing platforms are consistent.

To take an informed decision, ACER will run a public consultation from 16 May until 12 June 2022. ACER will also organise a public workshop on 31 May.

ACER will reach a decision by 30 September 2022.

Access the Public Notice.

What is the benefit?

The implementation frameworks for the European balancing platforms provide the rules for the efficient cross-border exchange of balancing energy from frequency restoration reserves with automatic activation (aFRR) and manual activation (mFRR) and for the imbalance netting.

The EU Agency for the Cooperation of Energy Regulators (ACER) and its National Regulatory Authorities (NRAs) publish today a practical note on how to monitor the capacity available for cross-zonal electricity trade in a harmonised way, in view of the minimum 70% target.

What is the minimum 70% target?

The Clean Energy Package has set a binding minimum 70% target for electricity interconnector capacity to be available for cross-zonal trading (the “minimum 70% target”).

It applies since 1 January 2020 and requires Transmission System Operators (TSOs) to offer 70% of their capacity available for cross-zonal trading. Member States may adopt transitory measures to reach the target gradually by the end of 2025.

Maximising cross-zonal trading opportunities is key to ensure an efficient internal electricity market.

What is the purpose of this note?

ACER and the NRAs jointly developed a common approach to monitor the margin available for cross-zonal trade. The note aims to:

• align as much as possible the principles used to monitor cross-zonal capacity across the EU,

• provide more transparency to market participants on how NRAs will assess compliance with the minimum 70% target. The note also details the list of deviations from the common approach in specific Member States.

Read more on the practical note.

Access the past editions of ACER’s reports monitoring the 70% minimum target.

Europe’s energy regulators, represented by the EU Agency for the Cooperation of Energy Regulators (ACER) and the Council of European Energy Regulators (CEER), welcome the European Commission’s Strategy to harness the potential of offshore renewable energy for a climate-neutral future. 

In their Reflection Paper, ACER and CEER broadly support the European Commission’s envisaged approach towards creating offshore bidding zones (OBZs) to integrate offshore renewable energy from hybrid systems into the EU electricity market. At the same time, ACER and CEER believe further consideration would be beneficial for the implementation of the offshore bidding zone model.

There remain several challenges, among which is the need to provide a stable investment framework for offshore renewables. ACER and CEER have concerns about the proposal to allocate congestion income to offshore renewable energy sources, or to exempt hybrid interconnectors from the requirement to make 70% of capacity available for cross-zonal trading. ACER and CEER caution that not abiding by the 70% rule implies re-introducing priority dispatch. This in turn would unduly favour offshore over onshore generation, distort competition and potentially prevent the cheapest electricity from reaching consumers.

ACER and CEER advocate refraining from exemptions from the general EU energy market rules. Instead, regulators propose less disruptive solutions such as market-oriented support schemes and/or seeking higher guarantees in terms of interconnection capacity availability. In addition, ACER and CEER fully support integrated network development and planning for offshore networks, as well as harmonisation of connection and operation rules to facilitate the deployment of hybrid systems.

Read more on the ACER-CEER Reflection Paper.

For a shorter reading, you can also access the accompanying Cover Note.

The EU Agency for the Cooperation of Energy Regulators (ACER) adopted a Decision defining the System Operation Regions (SORs). This Decision is part of the implementation of the Regulation on the internal market for electricity and the Clean Energy Package.

Why is the definition of System Operation Regions (SORs) relevant?

The definition of the System Operation Regions (SORs) represents the first step towards the establishment of Regional Coordination Centres (RCCs). RCCs will ensure an enhanced institutional framework for a higher level of coordination between Transmission System Operators (TSOs) at regional level, as well as reinforce system security and market efficiency.

The decision published today replaces ACER Decision No 10/2020, by which ACER had amended and approved the European Network of Transmission System Operators for Electricity (ENTSO-E)’s proposal of 6 January 2020.

With this Decision, ACER added further reasoning to its amendments and revised the definition of SORs, taking into consideration the impact of UK’s withdrawal from the EU. ACER also decided to maintain the South-West Europe as a separate SOR, as proposed by ENTSO-E.  

Access ACER's Decision 05/2022.

ACER’s report on national gas storage regulations provides an overview of the current national gas storage regulations. This report is relevant in the context of the current discussions on new policies for filling storages next winter.

The importance of gas storage

The European Commission’s REPowerEU communication (March 2022) highlights the need to be prepared for a possible interruption of gas supply. Gas storage plays an important role for ensuring continuity of gas supply. More recently, the Commission has tabled a legislative proposal introducing a minimum of 80% gas storage level obligation by 1 November for next winter, rising to 90% for the following years. EU leaders are expected to discuss and decide soon on the approach to refill Europe’s storage facilities.

The ACER report sets out the current storage situation across the EU and is based on information provided by its members, the national regulatory authorities (NRAs).

What are the main findings of the ACER gas storage report?

1. Facts on storage: the EU-27 storage capacity represents around 27% of the annual gas consumption of the European Union. 18 Member States have gas storage facilities. The remaining 9 Member States without storage represent less than 5% of the European annual gas consumption. More than 80% of the EU storage capacity consists of aquifers and depleted fields, which are primarily used for seasonal gas storage. The number and capacity of storage sites as well as the number of storage operators varies across the countries.

Type of storage regulation varies across Member States. 11 Member States have opted for regulated third-party access rules and regulated tariffs, while in 7 Member States, access to storage is negotiated between users and operators according to transparent and non-discriminatory rules. Slightly more than half of the gas storage capacity falls under a negotiated regime while the remaining falls under a regulated regime. NRAs have provided a description of national storage regulation, focusing on key regulatory aspects, roles and responsibilities.

2. Book and usage of storage: On 1st October 2021, the booked storage capacity in Austria, Germany, the Netherlands and Slovakia was significantly above actual used capacity due to low filling levels of storages used or controlled by Gazprom. Some Member States apply use-it-or-lose-it (UIOLI) rules to release booked but not used storage capacity; a measure that could be applied in all Member States.

3. Gas in storage obligations: 11 Member States have some type of storage obligations, including: capacity booking obligations, filling obligations for gas suppliers, strategic storage and regulatory limitations in the usage of storage under some conditions. In 7 Member States, there are no storage obligations at all.

4. Monitoring and compliance with storage obligations. Storage operators regularly monitor storage filling levels. For all regulated storages and most of non-regulated storages, monitoring data is regularly reported to authorities (Ministries, NRAs) and in some instances to oil and gas national stockpiling associations. When storage obligations are applicable, there are different models to address non-compliance: use-it-or-loose-it (UIOLI) regime whereby booked but not used storage capacity is offered on the secondary market, fines or a possibility to suspend licenses and contracts.

5. Different storage tariffs and capacity products. Different tariff and access to storage regimes coexist (11 Member States have regulated tariffs, 7 negotiated).  The same applies to the availability of storage capacity products, which can range from a single standard bundled product to up to six different products. Ten Member States offer three or more types of capacity products. Storage tariffs are public in most of the cases.

6. Assessment of storage and national plans to establish storage obligations. NRAs have increased the vigilance over gas storage this past winter. The main current concern is the filling of gas storages for the upcoming winter. Member States with a regulated regime for storage (e.g. Belgium, France, Italy, Poland and Spain) have a positive assessment of their national systems and note an adequate storage filling level at the start of past winter season. Austria, the Netherlands and Germany have announced plans to consider establishing some type of storage obligations. The war in Ukraine has accelerated the discussions on revising or introducing strengthened gas storage regulations.

7. Validation of data provided by storage operators to ENTSOG and GIE AGSI+ Platform. Most NRAs report no or minor differences on the data provided by storage operators. As data is not always final and complete in the AGSI+ platform, it is recommendable to establish a more rapid process for validating the final storage values as well as an obligation of storage operators to report to AGSI+.

Would you like to find out more? Detailed country information is available in the report.