​​​​​​Our perspective is European. Our overall purpose is to achieve a transition of the European energy system in line with political objectives set, reaping benefits of increased energy market integration across Europe, and securing low-carbon supply at least possible cost for European businesses and citizens.​

​ACER fosters a fully integrated and well-functioning Inter​na​l Energy Market, where electricity and gas are traded and supplied according to the highest integrity and transparency standards, so that EU consumers can benefit from a wider choice, fair prices and greater protection.

To achieve this, we work closely with the European Institutions, National Regulatory Authorities (NRAs), national governments and market players.

Over time, the Agency received additional tasks and responsibilities to better pursue the integration of the European internal energy market. With the latest provisions adopted in the Clean Energ​y Package​ (2019), the Agency has also further strengthened its responsibilities on the coordination with NRAs and cross-border cooperation.​

The Agency has seven Departments:

• Electricity

• Energy System Needs

• Gas, Hydrogen and Retail

• Market Information and Transparency

• Market Surveillance and Conduct

• REMIT Investigations

• Coordination, Operations and Legal

ACER’s Strategy Delivery & Communications team and the Human Resources and Facilities team report directly to the ACER Director and play a central role in providing key support functions to the whole Agency in fulfilling its mandate, objectives and goals.

ACER is mandated by RE​MIT​ to monitor the trading activity of wholesale energy products to detect and prevent market manipulation and trading based on inside information. ACER also collects data to assess and monitor the wholesale energy markets.

The European Commission's Implementing Regulation (2014), provide specifications on how ACER should collect the data, the data reporting obligations, as well as the timeline of implementation.

At ACER, the data collection process is managed by the Market Information and Transparency (MIT) department, and is based on five pillars:

• Registration of market participants 

• Registration of reporting parties 

• Data reporting management 

• Data quality analysis of collected data 

• Inside Information collection and disclosure 
   

​​​​In an integrated energy system, network planning and operation are carried out via a holistic approach for both large-scale and local infrastructures. This includes all the energy carriers (electricity, gas, blended, hydrogen, CO2, heating, district energy, liquid fuels) and would cover a longer timeframe than the ten years required by the current network​​​planning.

Such integrated approach is generally missing in the current energy market design and regulatory framework, with only few exceptions:

• The “Recast Renewable Energy Directive" (2018) establishes that Member States require electricity distribution system operators to assess at least every four years, in cooperation with the local heating or cooling operators, the potential for district heating or cooling systems to provide balancing and other system services and whether this would be more resource and cost efficient than alternative solutions.

• The “Recast Electricity Directive" (2019) has established the obligation for TSOs to consider alternatives to network expansion such as energy storage installations, including power-to-gas facilities. It has also established specific and exceptional conditions for Member States to grant their electricity TSOs the possibility to develop, manage, or operate energy storage facilities while the current gas regulatory framework does not allow it.​

​​Currently, the links in the energy sector between energy carriers (electricity, gas, heat) and between them and the consuming sectors (industry, buildings, transports) are limited.

The market and regulatory rules are designed separately.

Beyond the current electricity and gas market designs, the main market-based mechanisms currently in place are:

• Emission Trading Scheme - ETS: the ETS currently applies to power generation and heavy industries only. CO2 and greenhouse gas emitting sectors such as shipping are left out.

• Guarantees of Origin: as part of the Clean Energy Package, the “Recast Renewable Energy Directive" (2018) has extended the scope of guarantees of origin from 'electricity produced from renewable sources only' to 'gases produced from renewable and decarbonised sources, including hydrogen'. Discussions on whether the scope should be broadened in terms of energy/vectors, but also in terms of functions, are ongoing.

• Storage: the “Recast Renewable Energy Directive" (2018) has clarified the definition of energy storage for electricity, which now also includes power-to-gas installations.

• Flexibility markets: mainly focused on electricity (intraday, balancing, reserves). Currently a “circular economy approach" is missing (i.e. waste-to-energy).

• Bidirectional energy flows: the current electricity and gas demand side response mechanisms mainly involve big energy intensive companies. A more distributed generation/consumption approach is often missing. 

​​One of the key elements of the European Commission Communication “Powering a climate-neutral economy: An EU Strategy for Energy System Integration" is to make energy markets fit for decarbonisation and distributed resources.

The European Commission plans to achieve this by:

• Promoting a level-playing field across all energy carriers - by, among others, issuing guidance to Member States aligning non-energy price components across energy carriers, a possible proposal for the extension of the ETS scheme to new sectors, the revision of the Energy Taxation Directive

• Reviewing the legislative framework to design a competitive decarbonised gas market which can easily integrate renewable gases

• Improving customer information

Studies and impact assessments will be carried out in the next months and will contribute to the EC legislative revisions to be proposed by June 2021.

​​​​​​Most energy conversion technologies have not yet reached an efficient scale. They are likely to develop with an effective price signal, investments in research and development, and a system integrated network planning and operation.

Decarbonised gases, electrolysers, demand side response mechanisms and increased flexibility are likely to develop with more distributed generation and integrated market signals. 

The energy efficiency-first principle, together with the role of energy storage (thermal, gas, electricity, chemical) and the need for an improved access to and operation of the energy flexibility mechanism, are key elements to reach the decarbonisation and other energy system integration targets.

From a regulatory perspective, all technologies must be guaranteed a level playing field, so they can compete on the merits. Any obstacles or barriers to their equal treatment should be identified and removed, following an integrated energy system perspective.

​The Network Code on Emergency and Restoration (NC ER) provides the rules and standards for safeguarding a good level of operational security, preventing the propagation or deterioration of an incident to avoid a blackout, as well as allowing for an efficient and rapid restoration of the electricity system. The NC ER entered into force on 14 September 2017.

The NC ER's development was closely coordinated among ENTSO-E, ACER and the stakeholders.

As the NC ER does not foresee approvals by more than one regulatory authority, ACER will not be called upon to adopt decisions when regulatory authorities cannot agree on terms, conditions and methodologies. ​

​​​​​ACER and ENTSO-E have established the System Operations European Stakeholder Committee (SO ESC), to organise stakeholders' involvement on the implementation of the operation codes.

The SO ESC meets regularly to:

• Contribute to a more informed decision-making process regarding the implementation's methodologies and rules;

• Monitor the progress in the implementation, as well as in the operation and functioning of all the processes – at local, regional and pan-European level;

• Serve as a platform to share general views on the implementation, fostering stakeholders' engagements, receiving feedback and proposing amendments.

​​ACER and ENTSO-E monitor the implementation of the SO Regulation and of the NC ER​.The purpose of these tasks is generally twofold. 

First, ACER and ENTSO-E monitor the implementation of the operation codes in terms of requirements and provisions by TSOs. 

Second, once the specific req​​​​uirements have been implemented, ACER must monitor and analyse the implementation of the network codes and their effect on the harmonisation of applicable rules aimed at facilitating market integration, as well as on non-discrimination, effective competition and the efficient functioning of the market, and report to the Commission. 

ACER and ENTSO-E will publish different monitoring reports addressing the implementation.