ACER monitors the effective implementation of the Interoperability and Data Exchange Network Code and shares its findings in a dedicated report. The Report focuses on interconnection agreements, gas quality and odourisation as well as data exchange.
Interoperability and Data Exchange
What are the main findings?
The Report evaluates the key features of the national implementation and compared them in a structured assessment. The Agency found different national approaches to interoperability and data exchange and provided conclusions with a view to strengthen the application of this code.
The Report assesses 19 Member States: Austria, Belgium, Bulgaria, Germany, Denmark, Greece, Spain, France Croatia, Hungary, Ireland, Italy, the Netherlands, Poland, Portugal, Sweden, Slovenia, Slovakia and United Kingdom.
Launched by ACER and ENTSOG in 2016, the Gas Network Codes Functionality (FUNC) platform supported stakeholders in reporting issues with the implementation of gas Network Codes, Congestion Management Guidelines and the Transparency Annex.
As no new cases have been reported in recent years, the interactive platform has been discontinued.
New issues can still be reported via email. All previously submitted cases and related documentation are available in the section below.
If your submission contains confidential information, claim confidentiality:
Indicate what information is to be considered confidential and clearly identify which persons/undertakings should not have access to this information.
Provide reasons why the persons/undertakings should not have access to the information.
Provide a separate pdf of your submission, redacting the confidential information and providing a description of this. Your description must enable any party concerned with access to the file to determine whether there are sufficient grounds to request ACER or ENTSOG to grant access to the information claimed to be confidential. You can use a PDF editor or print out your submission and manually replace confidential information with descriptions.
ACER and ENTSOG are not responsible for disclosing any confidential information where the sender fails to claim confidentiality in accordance with the procedure above.
Hydrogen (H2) can be an “energy vector" - a fuel or an energy carrier and used for storage.
Low-carbon gases, such as biogas, bio methane, or hydrogen produced via electrolysis by using renewable-generated electricity (from wind, solar, etc.), are important contributors for transitioning towards a less fossil fuel dependent and, ultimately, carbon-neutral energy sector.
As hydrogen does not pollute the air when used, it is considered a vital part of the solution to meet the 2050 climate neutrality goal of the European Green Deal.
For example, hydrogen can help to decarbonise “hard to abate” economic sectors (e.g. heavy transport or energy-intensive industry) where reducing carbon emissions is both needed urgently and hard to achieve. Today, the amount of hydrogen used in the EU remains limited, and it is largely produced from fossil fuels. This is set to change as envisaged in the EU’s Hydrogen Strategy.
Currently, there is little hydrogen infrastructure development. Furthermore, what exists is not covered by the existing EU gas regulatory framework. Existing gas networks could contribute to this energy transition by adapting or repurposing to handle bio methane, admixtures of hydrogen and natural gas, or pure hydrogen.
Europe’s energy transition requires major public and private sector investment. The European Commission took an important first step in the proposed revision of the TEN-E Regulation by including hydrogen transmission infrastructure (new and repurposed), storage and cross-border electrolyser facilities within its scope - a step very much welcomed by ACER-CEER.
To realise the European Green Deal’s ambitions for hydrogen, the right regulatory framework must be created to facilitate a hydrogen economy in a cost-effective way.
See below the ACER-CEER Regulatory White Paper on “When and How to Regulate Hydrogen Networks?”. Furthermore, ACER has surveyed the national regulatory authorities (NRAs) to determine whether and to what extent the national gas networks can be repurposed to transport bio-methane and hydrogen blends, and has commissioned a number of background papers (see below).
ACER has looked into the current possibilities for admixing hydrogen and injecting biomethane or transporting pure hydrogen via existing gas networks, as well as network adaptations to allow this in the future.
Selected investments will be needed to gradually increase the ability to accept “green" gases. These types of new investments may deserve greater attention in gas network development plans. Technology developments, legal, regulatory, and network development efforts should go hand in hand to achieve an efficient and timely decarbonisation of the gas sector.
ACER and the NRAs will continue working together in exploring regulatory options for this to happen in the most efficient way for energy consumers.
The NC IMG used to oversee the implementation and implementation monitoring of electricity network codes and gas network codes in the EU. Network codes and guidelines are rules to harmonise technical, operational and market rules governing the EU's electricity grids and gas networks, making an integrated EU internal energy market possible.
The NC IMG is no longer operational and its work has been discontinued in 2020.
Information on implementation and implementation monitoring
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The Gas Network Codes Functionality Platform (FUNC) is managed by ACER and ENTSOG with the support of the European Commission. The platform allows stakeholders to report cross-border, regional and European issues related to the implementation of gas network codes and guidelines. This cooperation facilitates ACER and ENTSOG to find solutions to the cross-border, regional and European issues identified.
ACER and ENTSO-E co-organise three European Stakeholder Committees (ESCs), one for each family of electricity codes (market codes, operational codes, and connection codes).
They complement, rather than replacing, the legal obligations to consult and inform stakeholders during the implementation of electricity network codes.
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 Internal 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 Energy Package (2019), the Agency has also further strengthened its responsibilities on the coordination with NRAs and cross-border cooperation.
Our mission
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Our main areas of activity are:
Supporting the integration of the EU national energy markets, by developing common network and market rules, coordinating NRAs at European level, as well as by taking part in regional and cross-regional initiatives and organising working groups.
Monitoring the well-functioning and transparency of the EU internal energy market, in order to deter market manipulation and abusive behaviour. Since late 2011, the Agency has the specific mandate of overseeing wholesale energy trading.
Advising the EU Institutions on trans-European energy infrastructural issues. ACER also monitors the work of the European Networks of Transmission System Operators for gas and electricity (ENTSOG and ENTSO-E); issuing opinions on their EU-wide network development plans (TYNDP) and ensuring that these are aligned with the priorities set at European level.
To progress on these activities, the Agency can issue:
non-binding opinions and recommendations to NRAs, transmission system operators (TSOs), and the EU institutions;
binding individual decisions in specific cases and conditions about cross-border infrastructural issues;
draft framework guidelines (as in the case of network codes), on request of the European Commission.
The ENTSOs' Cost-Benefit Analysis (CBA) methodologies should allow a neutral comparison between the costs of infrastructure projects with their expected benefits, in order to inform decision-makers. The CBA methodologies are useful tools for assessing the projects' merits, and therefore guiding the PCIs selection process first; and later the NRAs to take decisions on investment requests and cross-border cost allocation.
The ENTSOs have also presented an interlinked electricity and gas market and network model which should be incorporated as a future part of the CBA methodologies. A truly interlinked model will allow to study the electricity and gas energy system and network development options in a holistic way and capture the interdependencies between both sectors, leading to a more efficient network planning. The implementation of an ambitious interlinked model has gained momentum given that energy sector integration ranks high in the European agenda.
Cost-Benefit Analysis and Interlinked Model
What's the role of ACER?
ACER provides Opinions on each draft cost-benefit analysis methodologies developed by the ENTSOs, as well as the interlinked model, and may request the process for CBA updates.
ACER provides a cooperation framework for NRAs to establish and publish a set of indicators and corresponding reference values for the comparison of unit investment costs for projects of gas and electricity infrastructure, which could be used in CBA analysis.
The projects of common Interest naturally contribute to enhance the security of the European gas supply. The degree of this contribution is assessed with the help of the cost-benefit analysis methodology.
Under the European regulation on security of gas supply, ACER is mandated to decide on CBCA reverse flow projects, to issue Opinions on exemption requests and on the elements of coordinated decisions taken by national authorities, as well as to participate in the Gas Coordination Group.
The study provides findings and suggestions for establishing a baseline of negative impact against which the merits of a project or “soft measure" can be assessed.
The study is accompanied by a “calculator" assessing the potential negative consequences of interrupted gas supply.
ACER is mandated to monitor the short-term gas supply outlooks published by ENTSOG for both winter and summer periods.
The summer outlook examines the potential evolution of the gas supply as well as the ability of the gas infrastructures to meet the demand, exports, and the storage injection needs during the summer.
The winter outlook assesses the storage levels before the winter season begins and uses simulations to assess the flexibility of gas infrastructure to dispatch gas supply to meet demand during the winter.
Gas storages play an important role in the European gas system as they supply up to 25-30% of the total gas consumed in the Union during winter. The energy crisis which followed Russia’s invasion of Ukraine in February 2022 underscored the importance of having adequately filled gas storages across Europe to enhance the preparedness for potential gas supply disruptions.
ACER, based on information provided by NRAs, periodically reviews and reports on national gas storage regulations.
The TEN-E Regulation introduced the so called “Projects of Common Interest" (PCIs). PCIs are infrastructure projects which have a significant impact on the EU electricity and gas systems, and help the EU achieving its energy policy and climate objectives: ensuring affordable, secure, and sustainable energy for all citizens.
PCIs also play a key role in the long-term decarbonisation of the economy in accordance with the Paris Agreement.
The PCI label helps accelerating the planning, streamlining permit granting and thus facilitating faster commissioning of projects, which bring the highest value to the European consumer.
Every two years, the European Commission draws up a list of PCIs, starting with the first list in 2013.
In April 2022 the fifth PCI list entered into force, with 98 projects in total: 72 electricity transmission, storage and smart grid projects, 20 gas and 6 CO2 network projects.
On 3 June 2022, the revised TEN-E Regulation was published in the Official Journal of the European Union.
The new Regulation, among others, aims to:
conform the infrastructure development to reflect the climate mitigation’s targets,
promote the integration of renewables and of clean energy technologies into the energy system,
continue to connect isolated regions,
strengthen existing cross-border interconnections and
promote cooperation with partner countries.
What is it about?
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ACER participates in the identification of projects of common interest (PCIs) and monitors their implementation annually.
In addition, the Agency contributes to:
Developing cost-benefit analysis methodologies to identify the best projects from a socio-economic perspective
Providing guidelines to facilitate the allocation of projects' costs across borders (CBCA)
Creating a cooperation framework for NRAs to establish and publish a set of unit investment cost indicators and corresponding reference values for gas infrastructure
Sharing best practices on regulatory incentives.
ACER has also proposed legislative changes to improve the planning and implementation of electricity and gas infrastructure and their governance, based on its experience with the implementation of the TEN-E regulation.
The European Commission is developing legislative proposals (as part of the Grids Package) to improve and simplify the current legal framework. This includes the revision and simplification of the 2022 Trans-European Energy Networks Regulation (TEN-E Regulation), a key framework for the European energy infrastructure development.
In March 2021, ACER and CEER published a position paper to set out recommendations on 6 main issues. The paper calls for neutral and independent technical assessment of infrastructure projects and improved regulatory oversight so that the projects bringing most benefits for the European Green Deal are supported and to avoid any risks of unjustified costs to European consumers.
Already in July 2020, ACER and CEER set out their recommendation to the European Commission (as it began developing its proposals on revising the Trans-European Energy Networks Regulation) in a Position Paper on the Revision of the Trans-European Energy Networks Regulation (TEN-E) and Infrastructure Governance. The proposals highlight how the legislative changes could improve the planning and implementation of electricity and gas infrastructure. The paper also advises on improving the infrastructure development governance, the principles for PCI scope, and the TEN-E processes.
Previously, ACER issued two other Position Papers (2016) and (2017) about possible improvements of the European framework for energy infrastructure development related to the TEN-E Regulation.
ACER contributes to efficient and consistent gas network development plans by monitoring the development and implementation of the European-wide TYNDP. ACER also reviews the consistency and complementarity of national, regional and European network development plans.
Additionally, the Agency monitors the implementation of the projects of common interest, which are a subset of the projects listed in the TYNDPs, as well as the gas regional investment plans (GRIPs).
What is the TYNDP and why is it important?
Every two years, ENTSOG publishes a non-binding Ten Year Network Development Plan (TYNDP), which looks forward over a ten-year horizon and includes a European supply adequacy outlook. These periodically updated plans are essential for identifying the need of new infrastructure projects to ensure an adequate level of security of gas supply. The TYNDP must be consistent with the National Development Plans (NDPs).
The Projects of Common Interest (PCIs) are selected from the most recent TYNDP via a separate process led by the European Commission. The TYNDP should provide essential and comprehensive information for the selection of PCIs, particularly a complete, monetised, and trustable cost-benefit analysis results.
What is the role of ACER?
ACER is mandated to monitor the development and execution of ENTSOG's Plan. As a result, ACER issues an opinion on the draft TYNDP taking into account the objectives of non-discrimination, effective competition, and the efficient and secure functioning of the internal gas market.
What are ACER's recommendations for improving future gas TYNDPs?
In July 2024, ACER published its feedback on ENTSOG’s “Implementation Guidelines and other complementary guidance documents” for the 2024 TYNDP, recommending further improvements (see our communication).
ACER periodically reviews the national network development plans to assess their consistency with the EU TYNDP. As a result, ACER issues Opinions including recommendations for improving the consistency between future network developments plans.
Transmission system operators (TSOs) establish regional cooperation within ENTSOG and publish a Gas Regional Investment Plan (GRIP) every two years. Based on this plan, TSOs can take investment decisions. ACER monitors the level of regional cooperation of TSOs within the GRIPs, and takes account of the outcome when formulating its views.
Consistency of gas and hydrogen network developments
