ACER reports a lag in implementing the EU framework to assess and tackle electricity security of supply risks in a coordinated manner

Today, ACER releases the 2023 report on the security of EU electricity supply.

The report looks into four main areas:

• lessons learnt from the energy crisis;
• implementation status of the EU adequacy framework;
• capacity mechanisms;
• other national measures to address security of supply.

The report provides recommendations on improving Europe’s security of EU electricity supply framework.

What are the report’s key findings?

• Europe’s integrated electricity and gas markets sheltered Member States during the energy crisis from price shocks and enhanced their security of supply.
• The implementation of the adequacy framework is uneven across the EU, potentially leading to unfair cross-border competition.
• Harmonised adequacy assessments are a key tool to assess security of supply risks. It is imperative to bring the European Resource Adequacy Assessment (ERAA) up to standard.
• Total EU costs of capacity mechanisms doubled since 2020 to €5.2 billion in 2022, further increasing by another 40% in 2023.
• Capacity mechanisms largely support fossil-fuels (coal and gas) power plants, potentially undermining the shift to a low-carbon economy.
• Non-domestic EU capacity providers are still unable to compete on an equal footing with domestic resources in capacity mechanism.
• There is scope for improving the design of incentives and penalties in capacity mechanisms to ensure delivery of the service.
• The proliferation of uncoordinated measures to address security of supply, beyond capacity mechanisms,  risk fragmenting the integrated EU electricity market; further streamlining of the European process for approving capacity mechanisms and guidance on the type of measures suitable to cope with exceptional situations is needed.

What are the next steps?

ACER will present the key messages of the security of EU electricity supply report at its webinar on 11 October 2023.

High-level panellists Catharina Sikow-Magny (DG-ENER), Christian Zinglersen (ACER) and Tim Schittekatte (Florence School of Regulation) will discuss the findings of the report and address key questions on the topic.

Register here.

Access the Security of EU electricity supply report.

Dive into ACER's informative infographic.

Explore the monitoring data on security of electricity supply.