The EU Agency for the Cooperation of Energy Regulators (ACER) and the Council of European Energy Regulators (CEER) publish today the 2021 Decarbonised Gases Volume of the Market Monitoring Report (MMR).

What is the Volume about?

This new Decarbonised Gases Volume describes the current state of EU decarbonised gases and hydrogen, and it examines the regulatory provisions and market context that may drive their evolution in the mid-term.

In particular, it looks at:

• Renewable and low carbon gases production, consumption and price levels, as well as their prospects from now until 2050;
• Key regulatory provisions governing the access of decarbonised gases to the market; and
• Infrastructure expansion required to facilitate the use of biomethane and hydrogen.

What are the main findings?

• Current production of renewable and low carbon gases is modest relative to future policy expectations;
• Production goals have been accelerated as a result of the supply diversification efforts due to the Russian invasion of Ukraine in 2022;
• Numerous challenges are being identified that may hinder the expansion of decarbonised gases and hydrogen production, including the need for:
  • improving infrastructure interconnections,
  • developing greater end-use demand,
  • new infrastructure investments; and
• Energy regulators see the need to clarify the regulatory, financial and technical aspects in time to ensure gas sector decarbonisation and clean hydrogen sector development.

Key recommendations

The Report includes a set of recommendations on how to facilitate the access of decarbonised gases to the market and how to strike a balance between enabling a decarbonised gases market and ensuring regulatory certainty. 

The main regulatory recommendations can be grouped into six areas:

• Technical rules – quality of gas must be defined;
• Market rules – access to networks should be facilitated;
• Access conditions – appropriate tariffing arrangements needed;
• Participation – identification of the appropriate bodies to undertake new roles needed;
• New investments – frameworks must be defined;
• Support – early phase technologies need to be identified.

Access the 2021 Decarbonised Gases Volume.

Explore the rest of the MMR publications.

The EU Agency for the Cooperation of Energy Regulators (ACER) launches today a public consultation inviting stakeholders to submit their views on the new framework guidelines on scenarios for network development planning (Scenarios Guidelines).

The procedure to adopt new Scenarios Guidelines that will be used in the electricity and gas Ten-Year Network Development Plans (TYNDPs) was initiated in July 2022.

In order to make an informed and inclusive decision on these Guidelines, ACER will collect views on draft guidelines from the stakeholders in a public consultation that will run until 14 November 2022.

Background

Every two years, the European Network of Transmission System Operators  for Electricity (ENTSO-E) and  for Gas (ENTSOG) prepare joint scenarios which set the basis for the future network development planning in the European Union.

Scenarios include a set of assumptions about energy demand and supply evolutions which aim at supporting the biennial Union-wide TYNDPs. These TYNDP processes feed into the identification and selection of Projects of Common Interest, which play an important role in making the infrastructure ready to achieve the energy and climate policy objectives.

The recasted TEN-E Regulation requires that the TYNDP joint scenarios must be transparent, non-discriminatory and robust.   

What is the role of ACER?

To ensure these TYNDP scenarios meet those criteria and are as well in line with the European Union’s climate and energy objectives, ACER is first drafting and then adopting Scenario Guidelines. ENTSO-E and ENTSOG shall follow these Scenarios Guidelines for developing the joint scenarios.

Next steps

After the Public Consultation, ACER will evaluate the received feedback and take it into consideration when finalising the Guidelines.

ACER’s Scenarios Guidelines will be adopted by 24 January 2023. ACER will organise an online webinar on 26 January 2023 to explain the challenges and key decisions that shaped the Guidelines. Moreover, at the webinar ACER will invite stakeholders to provide feedback on the process of guidelines development to possibly improve the process in future.

Access the public consultation and the responses to the public consultation. 

Access the online webinar.

The EU Agency for the Cooperation of Energy Regulators (ACER) publishes today its sixth report on the gas balancing network code implementation.

ACER monitors and reports on the effective implementation of the gas balancing network code​ since 2016. The reports review the country assessments for each Member State, or a large sub-set of balancing zones, focusing on key features of the balancing design.

This year’s report focuses on seven balancing zones that kept transitory or interim measures or showed partial implementation of the network code in 2020.  

In particular, the analysis focuses on zones that:

• did not terminate the interim measures by April 2019 (Bulgaria, Greece, Ireland and Slovakia) or that kept transitory measures (Portugal) after the 2016 deadline; and

• only partially implemented the code’s provisions (Finland and Romania).

What are the main findings?

The report finds that:

• Member States have terminated all interim or transitory measures by June 2022. The only exception is Slovakia which still has interim measures.

• Bulgaria, Finland, and Greece have progressed to a high implementation level. Ireland has improved its implementation level, which was already high.

• Portugal, Romania, and Slovakia have still only partially implemented the code – whilst Portugal has made some progress, Romania and Slovakia have not.

What are ACER’s recommendations?

ACER welcomes the termination of the interim and transitory measures and the progress across Europe.

ACER recommends that the relevant stakeholders:

• increase their transparency on information provision (beyond the minimum requirements); and

• explore possible efficiency gains (e.g. via balancing zone mergers) to overcome the persisting structural market limitations that do not allow the code’s full implementation.

Would you like to find out more? Access the Report.

Gas Balancing Dashboard

Check out ACER’s new Gas Balancing Dashboard. It presents the main monitoring trends visually and allows a comparison between national balancing regimes.

Find out more on how to interact with the Dashboard.

Access the Dashboard via direct link or through AEGIS webpage.

• Energy regulators see the need to adopt gas demand-adjustment measures now to avoid higher costs later
• Regulators support a well-defined crisis response process

Europe’s energy regulators represented by the EU Agency, ACER, and the national regulators’ association, CEER, welcome the European Commission’s “Save Gas for a Safe Winter” Plan.  Reducing gas consumption now will go a long way to avoiding low levels of reserves, potential disruptions and more economically costly sudden measures in the winter. Europe’s energy regulators agree that regulations regarding security of supply should be re-evaluated in terms of their effectiveness in “addressing a longer-term supply disruption from a major supplier affecting several routes at the same time”.

Regarding the voluntary 15% demand reduction efforts in the next eight months, Europe’s energy regulators note the importance (as mentioned in the draft Regulation) that measures not unduly distort competition or the proper functioning of the internal market in gas, or endanger the security of gas supply of other Member States or of the Union and that they be market-based.

The regulators stress the need for market-based mechanisms such as auction or tender systems to incentivise energy reduction by industry, as ACER and CEER recommended in their Gas Wholesale Market Monitoring report published last week.

The plan’s proposal for a clearer mapping of governance in response to a gas supply crisis is important and ACER and national regulators, as a member and observers (respectively) of the EU Gas Coordination Group, appreciate that the role of the Group is further defined in the three stages of crisis response proposed by the Plan. Ultimately, only proactive and coordinated action, which also ensures a fair outcome for consumers, can best address the present challenges and Europe’s energy regulators stand ready to do their part.

Commenting on the European Commission’s “Save Gas for a Safe Winter” Plan, the ACER Director, Christian Zinglersen, stated:

“In light of gas supply disruption risks, it is important to take proactive measures now to reduce gas demand. Demand reduction measures are essential to complement supply side measures.”

The CEER President, Annegret Groebel, stated:

“Extraordinary short-term interventions should not prevent the long-term solutions/targets related to the energy transition and climate targets. Rather, the need to reduce gas demand now should serve as an accelerator to the green transition and reaching the climate targets if handled properly. Of course, we must keep in mind vulnerable consumer groups such as low-income households that that may need targeted measures.”

Access the Press Release.

The EU Agency for the Cooperation of Energy Regulators (ACER) publishes today its Opinion on the key elements of the draft Ten Year Network Development Plans (TYNDP) Scenario Report (2022), drafted by the European Network of Transmission System Operators for Electricity (ENTSO-E) and for Gas (ENTSOG).

What are ENTSO’s network development scenarios?

ENTSOs’ network development scenarios represent visions of potential future developments of energy system’s key aspects (e.g. demand, energy prices, technologies, etc.).

ENTSO-E and ENTSOG published their joint draft TYNDP 2022 Scenario Report on 11 April 2022.

ENTSOs’ network development scenarios play an important role in the definition of the pan-European network development plans for gas and electricity. They are also instrumental for selecting the Projects of Common Interest (PCIs). As such, it is essential to define trustworthy, transparent, realistic scenarios that are aligned with the European energy and climate objectives.

In particular, the scenarios described within the draft TYNDP Scenario Report will set the basis for the 2022 TYNDP for gas and electricity transmission networks, expected to be published later this year.

What are the Opinion’s main conclusions?

ACER publishes its Opinion on ENTSOs’ draft network development scenarios on a biennial basis.

In this year’s draft Report, ACER identified some key issues, namely:

• the absence of long term effects on the European energy markets caused by the Russian invasion of Ukraine (e.g. effects on the gas prices, the location of gas sources, the speed-up of renewable energy sources (RES) intake, etc.),

• the (recurrent) lack of a common “slow economic development” scenario (describing how the energy system is to develop under less favourable economic conditions),

• the need to further clarify the connection between various scenarios (to enable a better understanding of diverse scenarios’ results).

ACER suggests that the diversity of scenarios should be better addressed in the new Scenario Guidelines.

However, ACER further notes the consequences of the Russian invasion of Ukraine should be included in the analysis of ENTSOs’ final report for 2022, as it could have a significant effect on the 2022 TYNDPs and subsequent PCIs selection.

While recognising the tight timeline, ENTSOs are strongly encouraged to update at least one scenario:

• ENTSO-E should update at least the gas prices and RES integration levels considered into the analysis,

• ENTSOG should also consider the existing changes of gas sources and flows.

An amended set of scenarios should be made available for the 2022 TYNDPs as soon as possible. ACER is ready to engage and provide support to ensure these amendments can be applied in a timely manner.

Read more on ACER's Opinion.

The EU Agency for the Cooperation of Energy Regulators (ACER) publishes today its Opinion on the Summer Supply Outlook for 2022 of the European Network of Transmission System Operators for Gas (ENTSOG).

What are the supply outlooks about?

The short-term supply outlooks issued by the European Network of Transmission System Operators for Gas (ENTSOG) and Electricity (ENTSO-E) are becoming increasingly important as they provide relevant information to EU decision-makers in the current times of unusual developments in the energy sector. ACER is mandated to monitor and assess ENTSOs’ summer and winter supply outlooks, and issues recommendations to further improve their methodologies.

ENTSOG’s Summer Supply Outlook 2022: what are the main findings?

ENTSOG’s Summer Outlook simulations consider potential disruption scenarios from 1 April. ACER highlights the following findings and possible scenarios:

• Under a baseline scenario (where there is no supply disruption), the European gas infrastructure provides sufficient flexibility to market participants to reach at least a 90% storage filling level in all underground gas storages by the end of the summer, ensuring planned maintenance and exports to Ukraine.
• The EU is dependent on Russian gas for a minimum of 20% of its supply. In order to minimise this dependency, liquefied natural gas (LNG) imports should increase up to 80 bcm over the summer season. However, there are  limitations in global LNG liquefaction capacities and some limitations in the cross-border transmission capacities within Europe, which may prevent some European countries from receiving all the additional LNG imports needed.
• In case the pipeline supply routes through Belarus and Ukraine are disrupted for the entire summer season, Europe can reach (on average) 84% filling level of its total storage capacity, with significant differences across Member States.
• In case of a full pipeline supply disruption from Russia, storages can only reach a 45% filling level of their total capacity. Most European countries would not reach the 80% filling target (with significant difference between Western and Eastern European countries).
• Most European countries do not rely on Russian gas during summer to satisfy their demand – not considering the refilling of storages - except Latvia, Estonia and Finland.

What is ACER’s assessment?

ACER welcomes ENTSOG’s timely publication and acknowledges the Outlook’s main findings. In particular, ACER appreciates that the scope and methodology used have been revised in light of the Russian invasion of Ukraine and the possible repercussions on risk preparedness in the European Union.

However, ACER finds that the Outlook’s assumptions and methodology could be further improved and therefore issues specific recommendations for future Outlooks.

• Potential impact of supply pipeline routes disruptions: ACER recommends considering the outlook findings dynamically in view of the most recent developments affecting the gas supply situation.
• Demand estimates: It is not clear whether ENTSOG’ gas demand projections have considered that sustained high level wholesale gas prices are likely to erode gas demand, particularly for industries. ACER advises ENTSOG to incorporate gas demand reduction measures in its gas demand projections.
• EU dependence on Russian gas: ACER notes the EU’s dependency on Russian gas is at least 20% to meet the 80% storage level by next winter. Therefore, selected reinforcements of the gas network may be needed to provide sufficient infrastructure capacities to reduce the dependence on Russian gas imports.
• Vigilance over fillings of storage during summer: The current situation calls for continued vigilance of all actors responsible for security of gas supply, and regular monitoring of storage filling trajectories. ACER praises ENTSOG for developing tools and initiatives beyond its legal tasks, which provide real value for monitoring close to real time the gas security of supply situation.
• Infrastructure to reduce dependence on Russian gas: ACER suggests ENTSOG to carry out additional studies to identify concrete investments and costs associated. These assessments should start from the possibilities to re-allocate existing capacities in view of expected changed of gas flow patterns from West to East.
• Treatment of odourised gas: ACER calls on ENTSOG and Transmission System Operators (TSOs) to prioritise, in coordination with national authorities and end-users, a detailed analysis on the feasibility of implementing reverse flows.
• Cooperation between ENTSOG and ENTSO-E: ACER highlights the importance of a close cooperation between the ENTSOs to ensure consistent assumptions and results in their respective gas and electricity seasonal outlooks.

Read more about the ACER’s Opinion.

The EU Agency for the Cooperation of Energy Regulators (ACER) and the Council of European Energy Regulators (CEER) publish today the Gas Wholesale Volume of the Market Monitoring Report (Gas MMR 2021).

The MMR offers an overview of EU gas markets in 2021 and in the first half of 2022. This edition focuses on analysing the various drivers causing unprecedented price escalation, includes recommendations for further market development and contains proposals to secure supplies and to hedge price exposure.

What is the Gas Wholesale Volume of the MMR about?

It looks at:

• gas market developments and the drivers of the unprecedented gas price rise,

• the level of competition and gas market functioning using mainly the metrics in the ACER Gas Target Model,

• the positive effects on markets of the implementation of the gas Network Codes.

It has a set of recommendations:

• to speed up a single Internal Gas Market in Europe,

• to secure gas supplies for Winter 2022 and hedge price exposure amid the challenging market circumstances.

The main findings of the 2021 Gas MMR are:

1. Record high EU LNG imports (mostly from the US) and falling gas demand are (so far) offsetting the lower Russian pipeline flows in 2022.

2. Markets expect gas prices to remain high in the coming months driven by concerns regarding supply.

3. The EU gas market delivers benefits in terms of trade, innovation signals and security of supply. The focus is on finding policy responses to secure supply (e.g. filling storage, diversification of supply etc.).

Explore the rest of the MMR publications and energy market data in our interactive dashboard.

This year for the first time, there will be a new Decarbonised Gases volume, due out in November 2022.

View presentation and recording of Gas MMR 2021 webinar.

Download the 2021 Gas Wholesale Market Volume.

The EU Agency for the Cooperation of Energy Regulators (ACER) has initiated the procedure to adopt new framework guidelines on scenarios regulating future network development planning, in accordance with the recast TEN-E regulation.

What is it about?

Every two years, the European Network of Transmission System Operators  for Electricity (ENTSO-E) and for Gas (ENTSOG) prepare joint scenarios which set the basis for the future network development planning in the European Union.

Scenarios include a set of assumptions about energy demand and supply evolutions which aim at supporting the biennial Union-wide ten-year network development plans (TYNDPs). These TYNDP processes feed into the identification and selection of projects of common interest, which play an important role in making the infrastructure ready to achieve the energy and climate policy objectives.

As such, enhanced scrutiny on the  process of developing scenarios leads to increased trust from stakeholders and citizens.   

What is the role of ACER?

The recasted TEN-E regulation stipulates a more structured process for developing the joint TYNDP scenarios. It requires from ACER to prepare Framework Guidelines which should ensure the TYNDP scenarios are transparent, non-discriminatory and robust, as well as in line with the Union’s climate and energy objectives (e.g. fostering Union’s 2030 energy and climate targets, as well as its 2050 climate neutrality objective). These scenarios should also build on the European Commission’s Fit for 55’ scenarios, as well as on the national energy and climate plans.

The ENTSO-E and ENTSOG shall follow the Agency’s framework guidelines when they construct the joint TYNDP scenarios.

What’s the way forward?

In order to inform its decision-making process in an inclusive and extensive manner, ACER will collect views from interested stakeholders.

Starting from July 2022, and on a regular basis, ACER will organise a series of technical workshops, involving the ENTSOs, stakeholders and scenarios’ experts.

In order to be invited to the technical workshops, stakeholders should raise their interest and share their initial views by writing at scenario.guidelines(at)acer.europa.eu by 25 July 2022.

A broader public consultation was held from 6 October until 14 November 2022; see the responses to the public consultation.

The new framework guidelines will be adopted in January 2023.

For more procedural information, access the Public Notice.

ACER will organise a webinar on 26 January 2023 to explain the Framework Guidelines.

Access the webinar.

Access more information on the ENTSOs’ most recent completed scenario development process.

Privacy Statement.

The EU Agency for the Cooperation of Energy Regulators (ACER) and the European Network of Transmission System Operators for Gas (ENTSOG) have discussed how to ensure greater flexibility to book firm capacity at interconnection points in an online workshop held on 27 June 2022. The discussion is also known as FUNC issue (ID 01/2020).

What is the FUNC issue?

The FUNC issue was reported by the European Federation of Energy Traders (EFET) who has proposed to make firm IP capacity more readily available to shippers by enabling Transmission System Operators (TSOs) to offer it for sale in uniform price allocation (UPA) auctions (outside the auction timetable dates envisaged by the Network Code on Capacity Allocation Mechanisms).

What’s the way forward?

Several solutions to enable a more flexible capacity allocation process, as well as the urgency of facilitating this process, were debated at the workshop. To learn more, access the recording and the slides presented at the event.

To further inform its decision-making process, ACER and ENTSOG are now opening a public consultation to continue the collection of more detailed inputs from stakeholders, particularly in relation to:

• how to optimise capacity allocation and

• how to assess and prioritise the proposals presented in the workshop, as well as their urgency.

Special attention is paid to the current and fast evolving conditions in the EU gas markets and how a change in capacity allocation would benefit the markets.

Update as of 4 August 2022: The deadline to provide input has been extended until 18 August 2022. 

The inputs gathered during the workshop and the public consultation will be key for ACER and ENTSOG to prepare a solution note, closing the FUNC case.

Access the Public Consultation.

The EU Agency for the Cooperation of Energy Regulators (ACER) has published the 8th edition of its annual report on the progress of electricity and gas Projects of Common Interest (PCIs​) for trans-European energy infrastructure for the year 2021.​

PCIs are key cross-border electricity and gas infrastructure projects that enhance the links between the energy systems across Europe. They also play a crucial role in helping the EU to achieve its energy policy, security of supply and climate objectives by delivering socio-economic and environmental benefits. Every two years ACER reports on the progress of the projects' implementation of the most recent PCI list, which is adopted by the European Commission.

The 8th edition of the report evaluates 72 electricity and 20 gas priority projects of the European Union, amounting to €73.9 billion.

What are the report’s main findings?

ACER confirms the positive trend in the implementation of PCIs, as recorded in recent years:

•  most of the progresses are in line with the projects’ planned schedule,

• about 70% of the projects are already in permitting phase or under construction. They are expected to be implemented within the next 5 years.

However, ACER also notes that about:

• 30% of the PCIs encountered delays, frequently caused by permit granting reasons,

• 15% have been rescheduled by the project promoters, for various reasons, including uncertainty connected with the levels of demand and supply.

In line with its mandate, the report focuses on the projects’ past performances. It does not provide recommendations regarding future infrastructure needs or their potential changes, particularly in light of the recent energy price hikes and the new circumstances related to EU energy imports.

Access the PCI Report​ and related Annex I for project specific information on electricity PCIs and Annex II for further information on gas PCIs.

Related information

On 3 June 2022, the revised TEN-E Regulation (laying down new EU rules for cross-border energy infrastructure, including PCIs) 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.