The implementation of the Clean Energy Package as a pillar of the Green Deal
The European Agency for the Cooperation of Energy Regulators (ACER) welcomed the valuable discussions at the Electricity Regulatory Forum (#FlorenceForum), held on 7-8 December 2020. The Forum emphasised the critical importance of Clean Energy Package implementation as a key pillar to addressing the challenges of the European Green Deal at lower cost. The Forum, organised by the European Commission, brings together Members States, regulators and industry.
Clean Energy Package - not yet done
In his key messages on the Green Deal to the Forum, ACER Director, Christian Zinglersen said:
“While a lot of progress has been achieved in the electricity sector over the last 10 years, the temptation is sometimes high to move on as attention shifts to new and important challenges, we should not fall for this trap to “tick the box" on electricity market integration. It is not done yet!'
Green Deal issues such as the new off shore wind strategy are underpinned by technical work. Key issues addressed at this Florence Forum included:
bidding zone configuration
the 70% cross-zonal target for interconnectors
ACER emphasised the necessity of an unbiased, sound, technical and neutral bidding zone review.
Resource Adequacy and Capacity Mechanisms
The Forum sees that a well-functioning market should be the first approach to ensure adequacy before introducing a capacity mechanism and for this purpose, the market reform plans have to be implemented in a timely manner by the Member States.
ACER in close collaboration with ENTSO-E, took the first steps this year in developing and adopting methodologies underpinning future European-wide resource adequacy assessments, informing the assessment done nationally. Effective cross-border participation in capacity mechanisms should
Reflect actual contributions to resource adequacy
Ensure non-discrimination between domestic and foreign capacity providers
Provide efficient signals for investment and operations
Capacity Allocation and Congestion Management (CACM) amendments
ACER will consult stakeholders on the scope of the amendments for the ACER recommendation on CACM.
70% Cross- Zonal Capacity
Calling for Transmission System Operators (TSOs) to make more interconnector capacity available for cross-zonal trade (as per the minimum 70% target), ACER provided a glimpse into its upcoming 70% Report (to be published before year end).
Most TSOs made a noticeable effort to provide extensive and accurate data.
Data is still an issue for the Nordic and Baltic regions (no data at all) and for Italy North and in France.
On DC borders, the 70% target was fulfilled most of the time with few substantial exceptions whereas on AC borders there is significant room for improvement.
ACER welcomes that CEP implementation remains the priority in the next years
ACER remains fully committed to this implementation process and, in close coordination with NRAs, to minimising potential delays. In that respect, the following ACER's deliverables will represent key milestones to the market integration process:
The implementation of the ACER's decisions on the European resources adequacy assessment
The implementation of the ACER's decision on the methodology for the bidding zone review
The implementation of the ACER's decisions on cost-sharing of redispatching and countertrading for the Core and SEE regions
The forthcoming ACER's special edition report on the 70% target
ACER is also committed to taking its full part to the network codes and guidelines' amendment process.
ACER presented to this Florence Forum on:
its planning for the amendments of the guideline on Capacity Allocation and Congestion - Management (CACM);
the amendment of grid connection network codes;
the 70% target;
Resource adequacy and capacity mechanism
Visit the European Commission website for the Forum agenda, conclusion and slides.
What's coming next?
14 Dec: MESC-meeting on the scope of the amendments for CACM recommendation
18 Dec '20: Publication of the ACER Report on the 70% cross-zonal target
21 Jan '21: ACER webinar on 70% cross-zonal target